provided, the current market value of such securities shall be at least twenty per centum more than the sum loaned thereon, but no such insurance company shall invest any of its funds in any unincorporated business or enterprise, nor in the stocks or evidence of indebtedness of any corporation, the owners or holders of which stock or evidence of indebtedness may in any event be or become liable on account thereof to any assessment except for taxes. Not more than one-fifth of its capital shall be invested in a single mortgage, nor shall any of its funds be loaned on personal security. If any investment or loan is made in a manner not authorized by this act the officers and directors making or authorizing the same shall be personally liable for any loss occasioned thereby." No domestic company shall purchase, hold or convey real estate except such as shall have been mortgaged to it in good faith, conveyed in satisfaction of debts, purchased at sales upon judgments, decrees or mortgages, etc., and any real estate so acquired which has been held for a period of more than five years from the date of purchase, receipt or acquisition, must be sold and disposed of within six months. Time may be extended by the Insurance Commissioner. A company may own real estate sufficient for the convenient accommodation of its business. LICENSED BROKERS-Law of June 1, 1911, Sec. 19. "An insurance broker is a person, not an officer or agent of the company interested, who for compensation, acts or aids in any manner in obtaining insurance. for a person other than himself." Provision is made for licensing brokers, and brokers' licenses may be issued to firms or incorporated agencies. No person shall act as an insurance broker without having obtained a license, under a penalty of $300. Law of June 1, 1911, Sec. 27. "The Insurance Commissioner may issue a license revocable at any time permitting the person, firm or corporation named in such license to act as a broker to procure policies of fire or marine insurance from companies and associations not authorized to do business in this Commonwealth. Before any fire or marine insurance shall be procured under or by virtue of said license, there shall be executed and filed with the Insurance Commissioner by the licensed broker and also by the party desiring the insurance, an affidavit which shall have force and effect for one year only from date thereof setting forth that the party desiring insurance is, after diligent effort, unable to procure the amount required to protect the property owned or controlled or entrusted to him from fire or marine insurance corporations —mutual insurance corporations or associations excepted-duly authorized to transact business in this Commonwealth. Sec. 28. "Each party receiving such license shall before transacting any business thereunder execute and deliver to the Insurance Commissioner a bond in the penal sum of $1000, with such sureties as the Commissioner may approve, conditioned that said broker will faithfully comply with all requirements of the preceding section of this act and will pay to the Insurance Commissioner in January of each year a tax of three per centum upon the gross * * premiums named in the policies delivered to the policyholders and upon LIMIT ON A SINGLE RISK-None. LLOYDS—A Lloyds association cannot legally be licensed in Pennsylvania. By a law of June 27, 1913, any class of individuals designated subscribers are authorized to exchange reciprocal or inter-insurance contracts providing for any insurance loss, except life. Contracts to be executed by an attorney in fact. Statement must be filed with Insurance Commissioner. showing applications for indemnity upon at least 100 separate risks aggregating $1,500,000, covered by bona fide contracts. Deposit required with attorney, $25,000. Commissioner must be appointed attorney for service of process. All fees and taxes same as required of regular stock companies. A reserve of 50 per cent of net annual deposits must be maintained. Any violation punishable by a fine of from $100 to $1000. MISCELLANEOUS-Two or more joint stock fire insurance companies authorized to transact business in Pennsylvania may issue a combination policy. Under a law passed June 1, 1911, the Insurance Commissioner is given authority to take charge of insolvent domestic insurance corporations. Misrepresentation is prohibited. MUTUAL COMPANIES-All mutual companies are under supervision of the Insurance Department. See "Domestic Companies." A mutual company of another State may be licensed to transact fire insurance when it possesses a net surplus over reinsurance reserve and all other liabilities of not less than $100,000. A mutual company writing inland and ocean marine insurance must have at least $250,000 surplus. PRELIMINARY DOCUMENTS-Company must file with the Commis sioner a certified copy of its charter; verified statement showing its condition and affairs; copies of forms of all policies it proposes to issue in the State, and appointment of Insurance Commissioner as attorney. Penalty for doing business without a license, $500 for each month, and no certificate will be granted until such fine is paid. Foreign companies must file certified copy of charter and certificate of deposit. Certificate of compliance with laws of home State is not required annually. Copy of charter and certificate of deposit need be filed but once, but any amendment of charter must be filed. PUBLICATION-No publication of statements required. RECIPROCAL LAW-Law of June 1, 1911, Sec. 30. "If, by the laws of any other State, any taxes, fines, penalties, licenses, fees, or other obligations or prohibitions additional to or in excess of those imposed by the laws of this Commonwealth upon insurance companies of other States and their agents. "No fire insurance commanner whatsoever, the it on property situated company or association State. No fire insurance are imposed on insurance companies of this Commonwealth and their agents doing business in such State, like obligations and prohibitions shall be imposed upon all insurance companies of such State doing business in this Commonwealth, so long as such laws remain in force." REINSURANCE-Law of May 8, 1899, Sec. 2. pany or association shall reinsure, in any whole or any part of a risk taken by or located in this State, in any other not authorized to transact business in this company or association shall transfer or cede, in any manner whatsoever, to any company or association not authorized to do business in this State any risk or liability, or any part thereof, assumed by it under any form or contract of insurance covering property located in this State, including any risk or liability under any general or floating policy, or any agreement, general, floating or specific, to reinsure excess loss by one or more fires. No fire insurance company or association shall reinsure or assume, as a reinsuring company or otherwise, in any manner or form whatsoever, 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." Sec. 4. "Every fire insurance company or association shall annually, and at such other times as the Insurance Commissioner may require, in addition to all returns now by law required of it or its agents or managers, make a return to the Insurance Commissioner, in such form and detail as may be prescribed by him, of all insurance or cessions of risk, or liability contracted for or affected by it, whether by issue of policy, entry on bordereau, or general participation agreement, or by excess loss reinsurance, or in any other manner whatsoever, upon property located in this State, or covering, whether specified or otherwise, any risk or liability upon property so located; such return to be certified by the oath of its president and secretary, if a company or association of one of the United States, and if a company or association of a foreign company by the oath of its managers in the United States, as to such reinsurance or cessions effected through its branch office in the United States, and by the oath of its president and secretary, or by officers corresponding thereto at its home office, wherever located, as to reinsurance or cessions, as aforesaid, contracted for, or effected through, the foreign office. The refusal of any such company or association to make the returns herein required shall be presumptive evidence that it is guilty of violating the provisions of the second section of this act, and shall subject it to the penalties prescribed and imposed by this act." Penalty for each wilful violation, $500; for non-payment of fine within thirty days, revocation of license, to continue at least one year. REINSURANCE RESERVE-Law of June 1, 1911, Sec. 7, provides that for fire insurance companies the Insurance Commissioner shall charge fifty per centum of the premiums received on all unexpired risks that have one year or less to run, and a pro rata on all premiums received on risks that have more than one year to run; and in marine and inland insurance he shall charge fifty per cent on the premiums written on yearly risks and all the premiums received on all other marine and inland unexpired risks; on perpetual business the deposits received, less a surrender charge of not exceeding ten per cent thereof, as a reinsurance reserve. RESIDENT AGENTS-Law of May 8, 1899, Sec. 1. "No fire insurance company or association not incorporated under the laws of this State, authorized to do business herein, shall make, write or place, or cause to be made, written or placed, any policy or 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 herein, who shall countersign all policies and receive the commission thereon, when the premium is paid. Railroad rolling stock and property in transit are excepted. A ruling of the Insurance Department is to the effect that it is unnecessary to have reinsurance policies written and countersigned by a resident agent, as the original policy has been so issued. Penalty, same as under "Reinsurance." * SEMI-ANNUAL STATEMENTS-See "Tax Statements." Also "Fire Department Tax." STANDARD POLICY-A standard form of policy was prescribed, but the Supreme Court has declared the act bearing upon the matter unconstitutional. TAXES Companies of other States and countries are taxed on gross premiums received in State, two per cent, allowing deductions for return premiums and reinsurance premiums, where the reinsurance is placed in companies authorized to transact business in Pennsylvania. Domestic companies pay eight mills on the dollar of gross premiums; ten per cent added for thirty days' delay in payment. Licensed brokers pay three per cent on gross premiums on risks placed with unauthorized companies. Penalty for neglect to pay tax, non-renewal of certificate until paid. Taxes must be paid into the State Treasury. TAX STATEMENTS-Must be filed semi-annually by July 31 and January 31, by domestic companies; by other companies, annually on or before March 1. See "Reinsurance." Credit is given for reinsurance in authorized companies. VALUED POLICY-No requirement. city, county, or municipality to impose or collect any license-fee or tax upon insurance companies or their agents, or insurance brokers, authorized to transact business under this act." PHILADELPHIA-Fire Insurance Patrol, one per cent of net premiums, payable semi-annually. TITUSVILLE-For each insurance office, $15 per year. panies and now in course of adjustment. Protested by com |