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UTAH.

STATE REQUIREMENTS. AGENTS DEFINED—Ins. Code, 1909, Sec. 22. "** * Any person who shall

solicit and procure an application for insurance, other than fire insurance, shall, in any controversy between parties to the contract, or between the parties to the contract and the beneficiary, if any, be held to be the company's agent, whatever conditions or stipulations may be contained in the

policy or contract." AGENTS' LICENSES-Agents must procure licenses, which expire annually

March 1. Penalty for acting as agent without a license or for representing an unlicensed company, for each offense, fine of $100 or imprisonment for two months, or both. Licenses are issued to firms and corporations, one

license covering all members and regular employees who work on salary. ANNUAL STATEMENTS—Must be filed by March 1, showing condition

as of December 31 next preceding. Penalty for violation, revocation of

license. ANTI-COINSURANCE—No prohibition of use of coinsurance clauses. ANTI-COMPACT-No law forbidding co-operation. ANTI-DISCRIMINATION-No provision. ATTORNEY-A resident of the State must be appointed to accept service of

legal process, and a new power of attorney must be filed with Insurance

Commissioner annually before March 1. CANCELLATION OF POLICY—No provision. CAPITAL REQUIRED—Ins. Code 1909, Sec. 26. “No joint stock fire in

surance company shall be permitted to do any business in this State, unless it is possessed of an actual paid-up cash capital and surplus as follows: (1) Companies with territory not limited to Utah, a capital of not less than $200,000, and a net surplus over all liabilities of not less than $100,000, or a capital and net surplus over all liabilities aggregating $300,000. (2) Companies, the business of which is limited to Utah only, a capital of not less than $50,000, and a net surplus over all liabilities of not less than $50,000. (3) No mutual or mutual assessment fire insurance company shall be permitted to do any business in this State unless it is possessed of cash assets as follows: (4) Companies with territory not limited to Utah, cash assets of not less than $100,000. Companies whose business is limited to Utah only, cash assets of not less than $25,000, such assets to be net after deducting all liabilities other than reinsurance reserve. Companies with a guaranty fund shall be required to have the same capital and surplus as that required of joint stock companies. No mutual or mutual assessment fire insurance company, shall receive a certificate of authority to do business in this State until it has filed with the Insurance Commissioner a satisfactory bond, to be approved of by the Insurance Commissioner, executed by at least two resident freeholders of this State or by a surety company authorized to do business in this State, in the penal sum of $10,000 for the use and benefit of the policyholders of such company in this State who, in any action against such company, may make such sureties or surety company defendants to the suit, and a judgment shall be rendered against them as shall be proper. If the total annual premiums of such company in this State should exceed $10,000, then the bond shall be increased to an amount equal to such premiums. If the insurance company so desires, it may, in lieu of such bond, deposit with the Commissioner of Insurance bonds or securities of the kind mentioned in paragraph (1), Sec. 27, of this Act, equal in value to the amount of such bond, the value thereof to be determined by said Commissioner. In the event of a policyholder of this State recovering judgment against such company, the Court shall make such decree for the sale of such securities to satisfy the

same as may be just and proper. COMMISSIONS TO NON-RESIDENTS—Commissions must be received by

resident agents. DEPOSIT-Sec. 26. "* * * No insurance company not organized under the

laws of a State, Territory or district of the United States, shall be admitted or permitted to do any business in this Sate, until, beside complying with the Insurance Laws of this State, it has made a deposit with the Commissioner of Insurance of this State, or with the duly authorized officer of some other State of the United States, of a sum of not less than the capital or capital and surplus or guaranty or surplus fund required of like companies under this Act. Such deposit must be an exclusive trust for the benefit and security of all the company's policyholders and creditors in the United States and may be made in the securities, but subject to the limitations specified in Sec. 27 of this Act; and such deposit shall be deemed for all purposes of the insurance laws, the capital or capital and surplus or guaranty or surplus fund of the company making it. Foreign companies must have at least $200,000 on deposit with the proper official in one State

or Territory of the United States. DOMESTIC COMPANIES—Ins. Code 1909, Sec. 31. “Any number of per

sons not less than five, at least one of whom shall be a resident of this State, may associate to establish a joint stock insurance company. * * * The Secretary of State shall not issue a certificate of incorporation to any insurance company unless it shall appear by affidavit that the subscribed capital and net surplus or guaranty fund when required by this Act shall have been paid as required by Sec. 26 of this Act.” Duplication

of corporate names is prohibited. EXAMINATIONS—Ins. Code, 1909. Sec. 15. "The Commissioner of In

surance shall examine and inquire into violations of the insurance laws of this State, and for this purpose, or to see if the laws are obeyed, or to examine the financial condition, affairs and management of any company,

he may visit or cause to be visited by any competent person or persons he may appoint, the head office in the United States of any domestic or foreign insurance company, applying for admission to or already admitted to do business in this State, and may for this purpose examine or investigate any company organized under the laws of Utah, and any agency of any company doing business in this State; provided, that the written consent of the State Board of Examiners must be obtained to all examinations, inquiries, or investigations made beyond the borders of the State of Utah. The cost of such examinations, when made beyond the borders of the State of Utah, shall be paid by the company examined, and shall include the reasonable expenses of the Commissioner, and assistants employed therein, whose services are paid for by the Department, and the compensation and reasonable expenses of his assistants employed therein whose services are not paid by the Department. *** The Commissioner may also examine companies upon the request of five or more of the policyholders, representing at least $100,000 insurance in force, who shall make affidavit of their belief, with specifications of their reasons therefor in writing, showing reasonable grounds for such belief, that such company is in an unsound or insolvent condition, provided that only the United States branches of companies incorporated in foreign countries shall be examined by said Commissioner." Penalty for obstructing an examination, fine not exceeding $500 or imprisonment not exceeding three

months, or both. FEES—There shall be paid by every insurance company doing business in the

State, to the Commissioner of Insurance, the following fees: For filing statement preliminary to admission (foreign companies), $50; for filing certified copy of acceptance by foreign companies of the provisions of the Constitution of the State of Utah, $3; for filing any power of attorney, $1; for filing articles of incorporation and by-laws of foreign companies and examination thereof, $25; for filing amendments to articles of incorporation and by-laws of foreign companies, and examination of, $5; for filing annual statement, $50; for certificate of authority to transact business in this State, $5 (certificates expire last day of February); for each copy of certificate of authority for use of agents and solicitors, $2; for preparing synopsis of annual statement for publication and certifying the same, $5; for each copy of any paper filed in his office, per folio, 20 cents; for affixing the seal of his office and certifying any paper, $I; for license to deal with unauthorized companies, $50; for examinations outside

of Utah, expenses thereof. FIRE DEPARTMENT TAX-Under a law passed in 1911 a tax of one per

cent is levied on the premiums collected by fire insurance companies in cities

having fire departments of a prescribed efficiency. FIRE MARSHAL—No law providing for investigation of fires. FOREIGN COMPANIES' HOME OFFICE STATEMENTS—None re

quired.

GENERAL PENALTIES—Ins. Code 1909, Sec. 16. “When the Commissioner

of Insurance deems it to the interest of the public, he may publish the result of any examination or investigation in a daily newspaper published in and of general circulation in the State. If the Commissioner finds, upon examination, hearing or other evidence, that any foreign or domestic insurance company is in an unsound or insolvent condtion or has failed to comply with the law or with the provisions of its charter, or that its condition is, or its methods are, such as to render its operation hazardous to the public or its policyholders, or that its actual assets, exclusive of its capital, are less than its liabilities, or if its officers or agents refuse to submit to examination or to perform any legal obligation relative thereto, or refuse on behalf of the company to pay the examination charges, he shall suspend or revoke all certificates of authority granted to said insurance company, and its officers or agents, and shall cause notice thereof to be published in one or more daily newspapers, which shall have a general State circulation, and no new business shall thereafter be done by it or its agent in this State, while such default or disability continues, nor until its authority to do business is restored. Before suspending or revoking the certificate of authority of any such company, the Commissioner shall, unless it is insolvent or its capital impaired, grant it fifteen days in which to show cause why such action should not be taken. Any foreign or domestic insurance company whose certificate of authority has been suspended or revoked by the Commissioner, may, within fifteen days thereafter, appeal from said order to the District Court of the district in which its principal place of business is located, which Court, upon filing the proper petition, shall cause the record and orders of the Commissioner to be brought before it, and upon a hearing of the case by the Court de novo, the Court shall either confirm or revoke the order of the Commissioner, as the law and the facts of the case may warrant.” In general any

violation of the insurance law is a misdemeanor. IMPAIRMENT-None permitted. See "General Penalties.” INVESTMENTS PRESCRIBED-Ins. Code, 1909, Sec. 27. "(1) No in

surance company shall transact business in this State unless it is possessed of the actual amount of capital or guaranty or surplus funds as required in Sec. 26 of this Act, in cash or invested in bonds or public stock issued or created by the United States, or by this State, or by any other State of the United States, or the District of Columbia, or any or either of them, or by any of the incorporated cities, counties, townships, or other municipal corporation thereof; or in bonds or notes secured by mortgages or trust deeds on unencumbered real estate located within said States or the District of Columbia, or either of them, worth at least fifty per cent more than the sum invested or loaned hereon. (2) Domestic insurance companies hereafter organized may, after complying with the provisions of this Act, invest their additional surplus or other funds, in such securities as are named in paragraph (1) hereof; or may loan upon, or purchase real estate or mortgage bonds of railroad companies organized under the laws of said State, or the District of Columbia, or either of them, or operated therein, or the capital stock, bonds, securities or evidences of indebtedness created by any corporation or corporations created under the Laws of the United States, or of this or any other State, except the stock of mining companies; provided, that no loan shall be made or retained on any of the above-mentioned securities, except the bonds or stocks issued or created by the United States, or this State, exceeding ninety per centum of the market value thereof; and provided, further, that no loan shall be

made by any company on its own stock.” LICENSED BROKERS—An agent may be licensed to procure policies in un

authorized companies by paying yearly fee of $50 (license expires March I), filing bond of $2000 and statements of business done, and paying 4 per

cent tax on premiums. LIMIT ON A SINGLE RISK—Ten per cent. of paid-up capital and surplus

(net). A mutual company's limit is 5 per cent of net premium income in

preceding year. LLOYDS—Ins. Code, 1909, Sec. 2. “That in this Act, unless the context

otherwise requires, "Company" or "Insurance Company" shall include all corporations, associations, partnerships, or individuals engaged as principals in the insurance business, excepting fraternal and benevolent orders

and societies." MUTUAL COMPANIES-Ins. Code, 1909, Sec. 62. "Twenty-five or more

persons, citizens of this State, may form a corporation to carry on the business of insurance on the mutual plan or fire insurance upon the assessment plan. The Secretary of State shall not issue a certificate of incorporation to any such insurance company organized on the mutual or the assessment plan unless it shall appear by affidavit of at least three of the incorporators that a guaranty or equivalent fund shall have been provided, as required by Section 26 of this Act, and until the Commissioner shall have approved the same.' The word “Mutual” must be embodied in the title. County mutuals may be organized by 25 residents owning $50,000

of property. PRELIMINARY DOCUMENTS—Company must file with the Insurance

Commissioner a copy of its last annual statement showing the condition of the company, also certified copies of its articles of incorporation and bylaws and certificate of incorporation, coupled with an acceptance of the provisions of the Ins. Code of the State. Penalty for doing business in Utah without authority, fine of $100. Certificate of incorporation and by-laws,

and acceptance of constitution, are filed but once. PUBLICATION—A statement prepared by the Commissioner of Insurance,

together with a copy of certificate of compliance, must be published annually within thirty days after issuance of certificate of authority, at least four times, in newspaper published at the capital, at the company's expense.

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