to three per cent of the amount at risk. In any year when the assessments required to pay losses and expenses would not equal five per cent of its premium notes, a company may assess up to five per cent and carry any available balance to surplus account for the payment of future fire losses and expenses as limited by law, such surplus shall at no time be made to exceed ten per cent of the face of the premium notes at such time in force, and any year when the fire losses and expenses of any company accumulating a surplus in this manner shall exceed the amount of a three per cent assessment such excess may be taken from the surplus and used in payment of losses and expenses. PRELIMINARY DOCUMENTS—Company must file with the Secretary of State a certified copy of its charter and by-laws, and a verified statement showing its financial condition, also power of attorney to Secretary of State, authorizing him to accept service of process. Foreign companies must also file certificates of deposit. Penalty for doing business for unauthorized company, fine of $100 to $1000. Certificate of compliance with laws of company's home State not required annually.

PUBLICATION-No provision.

RECIPROCAL LAW-Chap. 203, Sec. 4824. "If another State or country imposes or requires of a domestic insurance company or its agents doing business therein taxes, fees, fines, penalties, deposits, obligations or prohibitions exceeding those imposed by this State upon, or required of, foreign insurance companies doing business herein, an insurance company organized under the laws of such other State or country, and its agents doing business in this State, shall be subject to taxes, fees, fines, penalties, deposits, obligations or prohibitions similar to those so imposed in such other State or country, and the same shall be imposed, required and enforced as like taxes, fees, fines, penalties, deposits, obligations and prohibitions are under the laws of this State."

REINSURANCE-No express prohibition of reinsurance in unauthorized companies.

REINSURANCE RESERVE-Fifty per cent of premiums, less return premiums and reinsurance, on outstanding term fire risks, ninety-five per cent of premiums on perpetual risks, and one hundred per cent of ocean marine premiums, excepting on time hull risks, which may be computed at fifty per cent. See "Mutual Companies." RESIDENT AGENTS-Chap. 203, Sec. 4764. "If the Commissioners are satisfied with such copies and statements, and that the company has complied with the provisions of this title, they shall grant a license authorizing it to do insurance business by lawfully constituted and licensed resident agents only. * * * This shall not be construed to prohibit residents of this State from procuring insurance at the home office of any foreign company." Chap. 203, Sec. 4776. “Every fire ✶ ✶ ✶ insurance policy written in a foreign insurance company licensed to do business in this State, upon property located in the State, *** shall be countersigned by a duly

authorized agent of the company insuring the property,

*

who is a resident of this State." Chap. 203, Sec. 4817. "A fire or casualty insurance company authorized to do business in this State shall not authorize or allow any person, agent, firm or corporation that is a non-resident of this State to issue or cause to be issued a policy or policies of insurance on property located in this State." Sec. 4818. "A person, agent, firm or corporation licensed by the Insurance Commissioners to act as a fire or casualty agent in this State shall not pay, directly or indirectly, any commission, brokerage or other valuable consideration on account of any policy or policies covering property in the State, * to any person, agent,

firm or corporation that is a non-resident of this State, or to any person, agent, firm or corporation not duly licensed by the Insurance Commissioners as a fire or casualty insurance agent." Penalty for violation, revocation of license for three to six months for first offense, and for not less than one year for each subsequent offense.

SEMI-ANNUAL STATEMENTS-None required.

STANDARD POLICY-None prescribed.

TAXES-A two per cent tax on premiums received and assessments collected on business in the State is imposed; but in determining the amount of taxes to be assessed, there shall be deducted from the full amount of premiums and assessments the unused balance of notes taken for premiums on open policies; all sums paid for return premiums on canceled policies; dividends paid to policyholders; and the sums actually paid to other insurance companies incorporated by this State, or to the agents within this State of foreign companies, for reinsurance on risks for which a tax on the premiums would be due had no reinsurance been effected. Dividends in scrip or otherwise, in stock, mutual or mixed companies must not be considered return premiums. Taxes are payable in February to the State Treasurer. Penalty for failure to pay tax, revocation of license. There is a franchise tax of $10 for the first $50,000 of capital or deposit and $5 extra for each additional $50,000 or part thereof, but the whole not to exceed $50, payable in February to the State Treasurer. Licensed brokers must pay a tax of three per cent on gross premiums less return premiums. Penalty for failure to pay tax, revocation of license. Domestic mutual companies pay one per cent on net cash surplus to policyholders less value of real estate. Domestic stock companies pay one per cent on surplus.

TAX STATEMENTS-Statement for license, taxes and premium must be filed before March 1.

VALUED POLICY-No provision.

COUNTY TAXES AND FEES.

None.

MUNICIPAL TAXES AND FEES,

None.

VIRGINIA.

STATE REQUIREMENTS.

AGENTS DEFINED-Any person soliciting or procuring applications for any insurance company is held to be an agent.

AGENTS' LICENSES-License must be procured by agent. Penalty for soliciting without a license not less than $10 nor more than $100. Licenses expire July 15, annually. Agency corporations are not licensed; each soliciting member or employee must obtain a license.

ANNUAL STATEMENTS-Must be filed with Commissioner of Insurance by February 15, showing actual condition of company on the last day of the preceding year. Time may be extended sixty days for good cause. Penalty for failure to make report, fine of not less than $100 nor exceeding $1000 for each failure. Penalty for filing a false report, imprisonment for two to ten years.

ANTI-COINSURANCE-No law forbidding use of coinsurance clauses. See "Miscellaneous," Act of March 9, 1906.

ANTI-COMPACT-The Wharton anti-compact measure was repealed in 1902. See "Miscellaneous."

ANTI-DISCRIMINATION-Rebating in any form is prohibited.

ATTORNEY-The Commissioner of Insurance must be appointed attorney. to accept service of legal process.

CANCELLATION OF POLICY-No provision for notice to insured. CAPITAL REQUIRED-See "Deposit." No express provision as to amount of capital, but the latter must be stated under oath. Minimum capital stock of a domestic company, which must all be paid in, shall not be less than $25,000, nor less than one-tenth of its maximum capital stock. Company doing more than one kind of business, as provided in Chapter VI, must have at least $100,000 capital.

COMMISSIONS TO NON-RESIDENTS-No provision. DEPOSIT—Act of March 9, 1906, Sec. 14. "Unless otherwise provided in this chapter, every insurance company shall, by an agent employed to superintend or manage the business of such company in this State, or through some authorized officer, deliver under oath to the Treasurer of this State a statement of the amount of capital stock of said company, unless it be a mutual company, and deposit with him bonds of the United States, or of the State of Virginia, or of the cities or counties of this State, to an amount equal to five per centum on the said capital stock, or not less than ten thousand nor more than fifty thousand dollars, and the Treasurer shall thereupon give the agent a receipt for the same; provided, that the cash value of the securities so deposited need not be more than fifty thousand dollars, nor shall it be less than ten thousand dollars, and no

single bond so deposited shall exceed in amount the sum of ten thousand dollars; if a mutual company, it shall make a deposit of not less than ten thousand dollars nor more than fifty thousand dollars, the exact amount to be determined by the State Corporation Commission, as may seem equitable upon comparison with the deposit required by stock companies." Mutual companies paying losses wholly from assessments are exempt, but the law applies to all other fire insurance companies, domestic and foreign. DOMESTIC COMPANIES-Must be incorporated by State Corporation Commission. EXAMINATIONS-All insurance companies are subject to the inspection and supervision of the Commissioner of Insurance, who may examine a company whenever he deems it necessary. Before making an examination, the Commissioner shall first inquire of the Insurance Department of the company's home State; and if a favorable report is received, further examination may be dispensed with. If a company is found to be in unsatisfactory condition, its license may, after a hearing, be refused, revoked or suspended.

FEES-A State license fee of $200 is payable annually into the State Treasury, but the Auditor of Public Accounts shall not receive same until the Commissioner of Insurance has notified him he can receive it (see Taxes); licenses expire April 30; if license is taken out after May I the fee is pro rata for the first year to April 30, and for companies licensed in 1910 the charge is pro rata from January 1, 1911, to April 30, 1911. State Treasurer's fee for handling and safekeeping of deposits, onetwentieth of one per cent of their face value, payable in January. Annual registration fee: For maximum capital of $15,000 or less, $5; $15,000 to $50,000, $10; $50,000 to $100,000, $15; $100,000 to $300,000, $20; over $300,000, $25. Fee on admission, mutual companies, $50. Entrance fee payable into the Treasury of the State of Virginia once only, viz.: when company enters the State: Where the maximum capital stock is $50,000 and under, $30; over $50,000 and not in excess of $1,000,000, 60 cents for each $1000 or fraction thereof; over $1,000,000 and not in excess of $10,000,000, $1000; and advancing by $10,000,000 stages, each increase in fee $250, up to $90,000,000 ($3000); over $90,000,000, $5000. Foreign corporations without capital stock shall pay $50. The amount to which a company is authorized by the terms of its charter to increase its capital stock is considered its maximum capital stock. $5 to State Corporation Commission, payable once only, when company enters the State; to Secretary of Commonwealth, 20 cents per 100 words for recording charter and $1 for recording power of attorney; for certificate of any document, $1; for issuing each and every license or certificate of authority or renewal, $5 (to Insurance Commissioner); for broker's license, $100 (to Insurance Commissioner); for agent's license, $1 (to Insurance Commissioner); for receiving service of process, $2.50 (to Insurance Commissioner). Expense of examination is payable by company examined, unless remitted by Commissioner.

FIRE DEPARTMENT TAX-The Supreme Court has declared a tax of I per cent on premium collections for the benefit of disabled firemen to be unconstitutional.

FIRE MARSHAL-The Commissioner of Insurance is required to investigate fires which may be brought to his attention by official report, or otherwise, provided that when an examination is made on the application of any fire insurance company, the necessary expenses attending the same shall be paid by such company. He may inspect any building or premises except dwellings, and require owner to remedy dangerous conditions. FOREIGN COMPANIES' HOME OFFICE STATEMENTS-Not required. GENERAL PENALTY-Sec. 574. "Any person who engages in or exercises any business, employment or profession without a license, if a license be required by law, or in any manner violates the license or revenue laws of this State, if no specific fine is imposed for such violation, shall pay a fine of not less than $30, nor more than $1000 for each offense." Any company failing to pay taxes, fees or charges due, shall cease business in the State; and any agent or employee of a company in default, who shall transact business for such company while it is in default, shall be liable to a fine of $50 to $200, and to imprisonment for thirty to fifty days. Any violation of the Act of March 9, 1906, for which no penalty is prescribed, is punishable by a fine of $20 to $200. IMPAIRMENT-Whenever a domestic company becomes impaired, the Com

missioner may be authorized by the circuit court to administer its affairs. When a "foreign" company becomes insolvent, the Commissioner may be similarly authorized to take possession of its property in Virginia and distribute it among those entitled to it.

INVESTMENTS PRESCRIBED-No provision. LICENSED BROKERS-Act of February 19, 1904. Sec. 83. "No person shall, without a license, act as insurance broker. Every person who shall solicit for compensation, directly or indirectly, to be derived therefrom any fire, marine, life or other insurance, either on account of any person desiring to effect any such insurance, or on account of any insurance company, except the duly authorized agent (or a clerk actually employed in his office) of any insurance company licensed to do business in this State, shall be deemed an insurance broker." Sec. 84. "An insurance broker shall pay the sum of $100 for the privilege of transacting such business." Penalty for acting as broker without license, $50 to $500 for each offense. LIMIT ON A SINGLE RISK-Ten per cent of the capital and surplus; mutual companies, five per cent of cash assets. Any excess must be reinsured in an authorized company. Assessment mutual companies are exempt. Penalty for violation, revocation of license. Limit for company doing more than one kind of business, as provided in Chapter VI, 20 per cent of capital and surplus.

LLOYDS Act of March 9, 1906, Chap. 2, Sec. 1. "The words 'insurance