ducement to insurance which is not specified in the policy contract of insurance. Upon violation of this act the certificate of the company or agent shall be revoked, and upon conviction the offender shall be liable to a fine of $200 for each and every violation, or not less than sixty days' imprisonment nor more than six months. ATTORNEY-The Commissioner of Insurance must be named as attorney to accept service of legal process. CANCELLATION OF POLICY-Five days' notice of cancellation must be given by the company. Company may retain short rates, when policy is canceled by insured, in accordance with table adopted by the Minnesota and Dakota Fire Underwriters' Union; if canceled by company, the latter may retain only pro rata earned premium. CAPITAL REQUIRED-Of other State companies, at least $100,000; of domestic companies, at least $100,000. COMMISSIONS TO NON-RESIDENTS-No provision. DEPOSIT-None required of outside companies; domestic stock companies must deposit 50 per cent of capital with the Commissioner of Insurance. DOMESTIC COMPANIES Insurance Laws, Sec. 578. "Any number of persons, not less than seven, may associate, form and incorporate a company for the following purposes, to wit: To make insurance upon dwelling houses, stores, and all kinds of buildings, and upon household furniture and other property, against loss or damage by fire, lightning. cyclone, tornado or hail, and the risks of inland navigation and transportation. Any and all insurance companies incorporated under the provisions of this act which shall, in a declaration and charter provided to be filed, have expressed an intention to make insurance against loss or damage by the risks of inland navigation or transportation shall have power to make insurance upon vessels, boats, cargoes, goods, merchandise, freights and other property, against loss or damage by all or any of the risks of lake, river, canal and inland navigation and transportation." Each director must own $500 of stock. See "Deposit." EXAMINATIONS-Insurance Laws, Sec. 603. "It shall be the duty of the State Commissioner of Insurance whenever he shall deem it expedient to do so, in person or by one or more persons appointed by him for that purpose, not officers or agents of, or in any manner interested in, any insurance company doing business in this State, except as policyholders, to examine into the affairs of any company incorporated under any law of this State, or companies of other States or Territories, or any foreign companies doing business by their agents in this State; it shall be the duty of the officers or agents of any such company doing business in this State to cause their books to be opened for inspection of the Commissioner or persons so appointed, and to otherwise facilitate such examination so far as it may be in their power to do, and pay all reasonable expenses incurred therein, in no case to exceed $10 per diem. And for that purpose the said Commissioner, or person or persons appointed by him, shall have the power to examine under oath, the officers and agents of any such company, relative to the business of said company. And whenever the said Commissioner of Insurance shall deem it for the best interests of the public so to do he shall publish the result of such investigation in two newspapers in this State." Penalty for making false statement, revocation of license. License of company found to be in unsound condition shall be revoked. FEES For filing declaration or certified copy of charter, $25; for filing annual statement, $25; for each company's certificate of authority, $2; certificate for agent of domestic company, 50 cents; of a foreign company, $2; copies of papers on file, 20 cents per folio; affixing seal, $1; for examinations, actual expenses incurred, not to exceed $10 per diem; for service of legal process, $2. See "Reciprocal Law." Fees are payable to Commissioner of Insurance, and are turned into the insurance fund in the State Treasury. FIRE DEPARTMENT TAX-State pays two and one-half per cent for foreign stock and mutual companies and one per cent for domestic companies on all premiums received in cities and towns having duly organized fire departments to the town treasurers for the support of the Fire Department. See "Taxes." FIRE MARSHAL-Provision is made for investigation of fires by the Insurance Commissioner and his assistant. See "Taxes." FOREIGN COMPANIES' HOME OFFICE STATEMENTS-Insurance Laws, Sec. 593. "* * * foreign insurance companies shall transmit their statements of business other than that taken in the United States prior to the following first day of May" (covering preceding calendar year). GENERAL PENALTY-See under "Agents Licenses" and "Annual Statements." IMPAIRMENT-Insurance Laws, Sec. 599. "* * No agent shall be allowed to transact business for any such company whose capital is impaired to the extent of twenty per cent thereof while such deficiency continues." Sec. 604. "And whenever it shall appear to said Commissioner of Insurance from such examination, that the condition of any such company incorporated in this State is not such as to justify the continuance in business of any such company, he may direct the officers thereof to require the stockholders to pay in the amount of such deficiency within such a period as he may designate in such requisition, or he shall communicate the fact to the State's Attorney, whose duty it shall be to apply to the circuit court of the county in which the principal office of the company shall be located, for an order requiring them to show cause why the business of such company shall not be closed." Impaired companies may reduce their capital to an amount not less than the minimum required by law. License of company in unsound condition must be revoked. INVESTMENTS PRESCRIBED-Sect. 583. "*** Twenty per cent of the first one hundred thousand dollars of capital stock and ten per cent of any amount in excess of one hundred thousand dollars for which said company may be capitalized must be cash on hand, the remaining amount of said capital must be invested in United States bonds, State, municipal or school bonds, or loans upon unincumbered real property worth at least double the amount loaned thereon; fifty per cent of such loans shall be on South Dakota real estate. An amount equal to fifty per cent of the entire capital shall be deposited with the Commissioner of Insurance for the State of South Dakota." Sec. 586, as amended in 1913. "It shall not be lawful for any insurance company organized under the laws of this State to invest its capital and the funds accumulated in the course of its business, or any part thereof, except in bonds or mortgages on unincumbered real estate worth double the sum loaned thereon, exclusive of buildings, unless such buildings are insured and the policies transferred to the company or trustee under said mortgage at least (50 per cent) fifty per cent of such loans must be on South Dakota real estate, and also such real estate as shall be requisite for its convenient accommodation in the transaction of its business, and also in the bonds of the State, or stocks or treasury notes of the United States; and also the bank stock of national banks, and also in the stock and bonds of any county or incorporated city in the State authorized to be issued by the legislature to loan the same or any part thereof on the security of such stocks, or bonds, or treasury notes, or upon bonds or mortgages as aforesaid and to change and reinvest the same in like securities as occasion may from time to time require; but the surplus money over and above the capital stock of such insurance company, incorporated under any law of this State, may be invested in or loaned upon the pledge of public stocks or bonds of the United States, or of any of the States, stocks, bonds of the United States, or other evidences of indebtedness of any solvent dividend-paying institution, incorporated under the laws of this State or the United States, except their own stock, provided, always, that the market value of such stocks, bonds or evidence of indebtedness shall be, at all times during the continuance of such loan, at least ten per cent more than the amount loaned thereon. No domestic company may purchase or hold real estate other than that required for the convenient accommodation of its business, except that acquired in satisfaction for debts legally contracted. LICENSED BROKERS—No provision. LIMIT ON A SINGLE RISK-Ten per cent of paid-up capital, net. MISCELLANEOUS-Political Code, Chap. 210, Laws 1909, Sec. 14. as amended in 1911 and 1913. "It shall be unlawful for any person, company or corporation in this State, either to procure, receive or forward applications for insurance in or to issue or deliver policies in any company or companies not having been legally authorized to do business in this State, and any person, company, or corporation violating the provisions of this act shall be deemed guilty of a misdemeanor and upon conviction thereof shall for each and every offense be punished by a fine not to exceed $200 or imprisonment for not to exceed sixty days in the county jail or both such fine and imprisonment. And any person, firm or corporation, who shall have solicited and placed insurance in any insurance company not authorized to do business in this State, shall, in the event of the failure of such company to pay any loss or claim under the policy so issued, be liable to the insured for the amount thereof to the extent that such company would have been liable had it been authorized to do business in this State." A law passed in 1911 provides that every fire insurance company doing business in the State, which fails to pay any loss incurred within sixty days. after proofs of loss have been filed, shall be liable to a penalty of ten per cent in excess of the actual amount of loss. This penalty does not attach, if a loss is reported to the fire marshal for investigation, until thirty days after such investigation is completed and the companies notified, provided said investigation is completed within ninety days after notification. Sec. 14, Laws of 1913, provides that "Any person, firm or corporation procuring insurance on his, their or its property in this State in any unauthorized insurance company, whether stock or mutual company, Lloyds or interinsurance, exchange or association, shall report the same to the Commissioner of Insurance and shall pay to the State Treasurer five per cent of the gross premiums paid for such insurance as taxes; failure to so report and pay shall be deemed a misdemeanor punishable by a fine not exceeding two hundred dollars ($200) or by imprisonment in the county jail for not more than sixty days, or both. The Commissioner of Insurance may require a statement under oath from any person, firm or corporation or agent acting for such person, firm or corporation, giving a list of all insurance carried on property in this State owned or controlled by such person, firm or corporation. A failure to comply with his request for such statement within thirty days shall be deemed a misdemeanor punishable by a fine of not more than two hundred dollars ($200) or imprisonment in the county jail for not more than sixty days, or both, for each offense. MUTUAL COMPANIES-Provision is made for the organization of State, county and township mutual insurance companies. A State mutual may be incorporated by twenty-five residents collectively owning $50,000 of personal property and $50,000 of real estate; a county mutual may be formed by twenty-five persons residing in the same county or in adjoining counties not exceeding seven counties who shall, collectively, own $25,000 worth of property; and a township mutual may be incorporated by twentyfive residents of not exceeding twenty-five adjoining townships, who collectively own $25,000 worth of property. A company must have subscriptions for 200 separate risks aggregating at least $200,000 before beginning business. Church, mutual fire and tornado insurance companies are not required to be licensed by or report to the Insurance Commissioner. PRELIMINARY DOCUMENTS-Company must file with the Commissioner of Insurance a copy of its charter and by-laws, an anti-compact affidavit, copy of a recent examination, copy of appointment of resident agent, and a statement showing its financial condition. PUBLICATION—Statement must be published at least three times in a newspaper printed and published in each judicial district in which the company shall have policies issued, and proof of publication filed with the commissioner. Statements for publication to be made on blanks furnished by the Commissioner of Insurance. The cost of such publication is $17.50 per district. There are 12 judicial districts in the State. Affidavit of publication must specify that the amount charged for such publication inures to the benefit of the publisher solely. RECIPROCAL LAW-Sec. 671. "When by the laws of any State or Territory any taxes, fines, penalties, licenses, fees, deposits of moneys or securities, or capital requirements, or other obligations, or prohibitions are imposed or would be imposed on insurance companies of this State doing, or that might seek to do, business in such State or Territory, or upon their agents therein, so long as such laws continue in force, the same obligations and prohibitions, of whatever kind, shall be imposed upon all insurance companies of such State or Territory doing business within this State or upon their agents here." REINSURANCE.-No prohibition of reinsurance in unauthorized companies. No credit is allowed, in calculating taxes, for reinsurances in unlicensed companies. REINSURANCE RESERVE-Domestic stock companies are required to maintain a reserve of 40 per cent of all premiums in force, and domestic mutual companies a reserve of 25 per cent of annual premiums and 50 per cent of the pro rata on those running more than one year. RESIDENT AGENTS—Insurance Laws, Sec. 667. "No corporation trans acting the business of fire insurance in this State, nor incorporated under the laws of this State, shall write or cause to be written any policy of insurance on property located in this State, except through a duly authorized agent of such corporation who shall reside within the State and who shall be licensed by the Commissioner of Insurance according to law." SEMI-ANNUAL STATEMENTS-None required. STANDARD POLICY—A new standard form of policy was adopted by the legislature in 1909, following in general the New York standard form. Penalty for violation of law, $50 to $100 for first offense, and $150 to $300 for each subsequent offense. The Attorney-General rules that a tornado insurance rider may not be attached to the standard fire insurance policy. TAXES Insurance Laws, Sec. 675. "Every fire insurance company doing business in this State except companies organized under the laws of this State, shall, at the time of making the annual statement, pay into the State Treasury as taxes two and one-half per cent of the gross amount |