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must file statements "annually, after the first day of January of each year, and before the renewal of its authority to transact business." Printers' and

county mutual companies must report by last day of February. ANTI-COINSURANCE-Art. 4893, Laws of 1913. Co-Insurance Clauses.

“No company subject to the provisions of this chapter shall issue any policy or contract of insurance covering property, real or personal, situated in this State which shall contain any clause or provision requiring the assured to take out and maintain a larger amount of insurance than that expressed in such policy, nor in any way providing that the assured will be liable as a co-insurer with the company issuing the policy for any part of the loss or damage which may be caused by fire to the property described in the policy, and any such clause or provision shall be null and void and of no effect, whether written with or without the consent of the assured; and any company issuing a policy with such provision or provisions therein shall nevertheless be liable to the assured for the full amount of the damage and loss sustained by the property holder, not exceeding the face of the

policy, notwithstanding such provision or provisions.” ANTI-COMPACT_Chap. 19, Sec. 357, is an anti-trust measure. ANTI-DISCRIMINATION—The State Insurance Commission Law of 1913,

Secs. 22 and 23, prohibit the giving or receiving of rebates. Penalty for insured accepting such rebates, $100 or imprisonment for ninety days, or both; for company, fine of from $300 to $1000. Discrimination is also for

bidden. ATTORNEY-A resident of the State must be appointed to accept service

of legal process. CANCELLATION OF POLICY-No provision. CAPITAL REQUIRED—A foreign company must possess at least $100,000

of actual capital, safely invested. Provision is made for domestic mutual

companies, without capital. COMMISSIONS TO NON-RESIDENTS-Commissions must be received by

resident agents. DEPOSIT—Chap. 7, Sec. 159. “Every fire insurance company not organized

under the laws of this State applying for a certificate of authority to transact any kind of insurance in this State shall, before ob taining such certificate, file with the Commissioner of Insurance and Banking, a bond, with good and sufficient surety or sureties to be approved by the Commissioner of Insurance and Banking, payable to the Commissioner of Insurance and Banking, and his successors in office, in a sum equal to 25 per cent of its premiums collected from citizens or upon property in this State during the preceding calendar year, as shown by its annual report for such year; provided, however, the bond in no case shall exceed fifty thousand dollars, nor be less than ten thousand dollars, conditioned that said company will pay all its lawful obligations to citizens of this state. Such bonds shall be subject to successive suits by citizens of this State so long as any part of the same shall not be exhausted and the same shall be kept in force unimpaired until all claims of citizens of this State arising out of obligations of said company have been fully satisfied.” Sec. 160. "Such bonds shall provide that in the event the company shall become insolvent or cease to transact business in this State at any time when it has outstanding policies of insurance in favor of citizens of this State, or upon property in this State, the Commissioner of Insurance and Banking shall have the power, after having given ten days' notice to the officers of such company or any receiver in charge of its property and affairs, to contract with any other insurance company transacting business in this State for the assumption and reinsurance by it of all the insurance risks outstanding in this State of such company which is insolvent or which has ceased to transact business in this State, which contract shall also provide for the assumption by such reinsuring company of all outstanding and unsatisfied lawful claims then outstanding against such company which has become insolvent or ceased to transact business in this State, and in the event of the Commissioner making any such contract, and if the same shall be approved as reasonable by the Attorney General and the Governor of this State the reinsuring company shall be entitled to recover from the makers of such bond the amount of the premium or compensation so agreed upon for such reinsurance." Sec. 161. "Any company desiring to do so may at its option, in lieu of giving the bond required by this section, deposit securities of any kind in which it may lawfully invest its funds with the State Treasurer of this State upon such terms and conditions as will in all respects afford the same protection and indemnity as is herein provided for to be afforded by said bond.”

Sec. 162. “Every fire insurance company not organized under the laws of this State which shall hold a certificate of authority to transact any kind of insurance business in this State, when this act takes effect, shall within ninety days thereafter comply with the requirements of Sec. I of this act, as to companies hereafter obtaining certificates of authority, and it shall be the duty of the Commissioner of Insurance and Banking to revoke the certificate of authority failing to so comply within such period."

Sec. 163. "Every fire insurance company not organized under the laws of this State, hereafter issuing or causing or authorizing to be issued any policy of insurance other than life insurance, shall first have filed with the Commissioner of Insurance and Banking during the calendar year in which such policy may issue or authorize or cause to be issued a bond of good and sufficient sureties to be approved by such Commissioner in a sum not less than ten thousand dollars, conditioned for the payment of all lawful obligations to citizens of this State arising out of any policies or contracts issued by such fire insurance company, which such bond shall be subject to successive suits by citizens of this State so long as any part of the same shall not be adjusted and so long as there remains outstanding any such obligations or contracts of such fire insurance company. Any person violating the provisions of this section shall be deemed guilty of

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a misdemeanor, and upon conviction shall be punished by a fine of not less than one hundred nor more than five hundred dollars or by imprisonment in the county jail for not less than three nor more than twelve months, or by both such fine and imprisonment. This act shall not apply to any person, firm or corporation or association doing an interinsurance, cooperative or

reciprocal business.” DOMESTIC COMPANIES—Chap. 3, Sec. 49. “Any number of persons de

siring to form a company for the purpose of transacting insurance business shall adopt and sign articles of incorporation and submit the same to the Attorney-General, and if said articles shall be found by him to be in accordance with the laws of this State, and of the United States, he shall attach thereto his certificate to that effect, whereupon such articles shall be deposited with the Commissioner of Insurance.” Sec. 50. "Such articles shall contain the name of the company, and the name selected shall not be so similar to that of any other insurance company as to be likely to mislead the public, the locality of the principal business office of such company, the kind of insurance business which the company proposes to engage in, the amount of its capital stock, which shall in no case be less than $100,000.” There must be from seven to thirteen directors. Domestic companies are governed by the laws relating to companies in general, when not incon

sistent with the particular provisions regulating the former. EXAMINATIONS-Sec. 37. “The Commissioner of Insurance and Banking

for the purpose of examination authorized by law, has power, either in per-
son or by one or more examiners by him commissioned in writing, *
to visit, at its principal office, wherever situated, any insurance company
doing business in this State, for the purpose of investigating its affairs
and conditions, and shall revoke the certificate of authority of any such
company in this State refusing to permit such examination." License
of company may be revoked or modified for any non-compliance with law.

Domestic mutual companies must be examined annually.
FEES—Every copy of paper on file, 15 cents per 100 words, in English; in

other languages, 25 cents; translations, 30 cents; for filing declaration or certified copy of charter, $25; for filing annual statement, $20; for certificate of authority, $1 (for company, no charge for agents' licenses); for affixing certificate and seal, $1; for certificate not provided for, 50 cents; for official examination, actual expenses incurred and $10 per day, not to exceed $250; for two certificates of compliance (for publication), $1; licensed brokers, $25; domestic mutuals for filing application for license, $1; for filing annual statement of printers' or county mutual company, $5. Fees payable to the Insurance Commissioner. Reciprocal Law. (See

"Taxes.") FIRE DEPARTMENT TAX-No provision. FIRE MARSHAL-Provision is made for the investigation of fires, etc., by a

State Fire Marshal, who shall be a member of the State Insurance Commission.



provides that home office statement must be filed by all companies. GENERAL PENALTIES—Chap. 17, Sec. 293. "If any person shall violate

any provision of the laws of this State regulating the business of life, fire or marine insurance, he shall be punished by fine of not less than $500, nor more than $1000.” Penalty for non-payment of final judgment longer

than thirty days, revocation of license until execution is satisfied. IMPAIRMENT-If the capital stock of a company is impaired to the extent

of twenty per cent, the company must make good its whole capital stock within sixty days, or cease to do business in the State. The Commissioner may permit the reduction of capital of domestic companies, under restric

tions, to an amount not less than $100,000. INVESTMENTS PRESCRIBED—The capital stock of a company shall con

sist in lawful money of the United States, or in bonds of Texas or any county or incorporated town or city thereof, or stock of any national bank, or in first mortgages on real estate in Texas, worth double the amount loaned thereon. Surplus funds may be invested in or loaned upon the pledge of public stocks or bonds of the United States, or any of the States, or stocks and bonds or other evidences of indebtedness of any solvent dividend-paying corporation, or in bills of exchange or other commercial notes or bills, except its own stock, provided, always, that the current market value of such evidences of indebtedness shall at all times during the continuance of such loans be at least twenty per cent more than the sum loaned thereon. Mutual companies may invest in mortgages, bonds of State of Texas, or of any county, city, town or school district in Texas. Domestic companies may hold only such real estate as is requisite for the convenient accommodation of their business, and such other real estate as

is acquired under foreclosure or in satisfaction of debts. LICENSED BROKERS-A regularly licensed agent of one or more com

panies may be authorized to place excess lines in unauthorized companies, after the party desiring such excess insurance has filed an affidavit that the capacity of the authorized companies has been exhausted. A fee of $25 is charged for this license, and the agent must file a bond for $1000, and must report gross premiums received for such excess insurance semi

annually, on January 31 and July 31, and pay a tax of five per cent thereon. LIMIT ON A SINGLE RISK-Ten per cent of paid-up capital (except on

cotton in bales and grain) net, after reinsurance in authorized companies. LLOYDS—No specific provision. Law applies to “any person” in any manner

transacting business connected with insurance. The Insurance Commissioner states that “we have no laws in Texas which authorize the operation of Lloyds associations"; but S. B. No. 230, effective July 1, 1913.

provides for the licensing of inter-insurance exchanges. MISCELLANEOUS-No suit under a policy must be taken to a United

States court. Penalty for violation, forfeiture of license and non-renewal of same for three years.

No fire insurance company is permitted to transact life or health insurance Companies issuing joint policies in so doing violate the anti-trust law of the State. Immaterial misrepresentations do not void policies. Company licenses expire on last day of February. License shall be revoked on failure to pay judgment within 30 days after notice of issuance thereof. No policies are allowed to have any allusion to a lien on property insured. An act of the 1913 legislature provides that breach of warranties in fire policies on personal property constitutes no defense unless same contributed to the loss. Judgment for attorneys' fees against insurance company when losing case. (R. S., Art 3701. Art

3096, 1895.) MUTUAL COMPANIES—May be organized by seven or more residents of

the State. Company must secure 100 applicants, each owning real estate worth $1000; and a cash payment of not less than fifty per cent of the first premium must be made. Charters are issued by Insurance Commissioner, and he certifies as to correctness of notes and applications. Expenses must not exceed thirty-five per cent of the annual premiums. No other State company without an authorized capital will be admitted. Act

of March 19, 1913. PRELIMINARY DOCUMENTS—Company must file certified copy of

charter with all amendments, name and residence of each of its officers, directors and members, certificate of compliance, a schedule of Texas agents, an attested copy of its last annual statement, a certificate of deposit, and an affidavit of compliance with resident agents' law Certificate of compliance with laws of company's home State required annually, within

sixty days after January 1. PUBLICATION—Certificates of authority must be published annually,

within thirty days after issuance, for three successive weeks in two newspapers printed in the State; evidence of publication must be filed with

Commissioner. RATING SCHEDULES TO BE FILED—The Law of 1910 was repealed in

1913 and a State Fire Insurance Commission was instituted to replace the State Rating Board. Sec. 2, Laws of 1913. “After this Act shall take effect, a maximum rate of premiums to be charged or collected by all companies transacting in this State the business of fire insurance, as herein defined, shall be exclusively fixed and determined and promulgated by the State Fire Insurance Commission created by this Act, and no such fire insurance company shall, after this Act takes effect, charge or collect any premium or other compensation for or on account of any policy or contract of fire insurance as herein defined in excess of the maximum rate as herein provided for, but may write insurance at a less rate than the maximum rate as herein provided for; provided, that when insurance is written for less than the maximum rate, such lesser rate shall be applicable to all risks of the same character situated in the same community.”

The law applies to all companies writing policies of fire insurance; creates a State Fire Insurance Commission of three members and confers upon the

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