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COMMISSIONS TO NON-RESIDENTS—Commissions must be received by

resident agents. DEPOSIT—None required. Foreign company must have $200,000 on deposit

in some State in assets, in which domestic companies are permitted to in

vest. See “Investments Prescribed.” DOMESTIC COMPANIES-Chap. 77, Laws of 1907. Five or more persons

may form a company by signing and acknowledging agreement, and paying in ten per cent of capital. Agreement and certificate of payment of ten per cent of capital must be filed with the Secretary of State. Company must be examined and licensed by the Insurance Commissioner, and no company will be licensed until at least $100,000 has been paid in. Sec. 74. No

charter to be issued until approval by the Insurance Commissioner. EXAMINATIONS—Code, Chap. 34, Sec. 3. “The Insurance Commissioner

may from time to time examine the methods of business of any company, corporation, association, partnership, or combination of persons doing any kind or form of insurance business in this State and may require them to answer such questions as he may think necessary for the purpose of such inquiry; and if in his opinion any such company, corporation, association, partnership or combination of persons is doing business in an illegal, improper or unjust manner, or failing to adjust and pay losses and obligations when they become due, excepting claims to which there is a substantial defense, he may order it to discontinue such illegal or improper method of doing business and may order it to adjust and pay its losses and obligations as they become due." Sec. 15 (i), Laws of 1907) provides that a company withdrawn from the State remains subject to all requirements of the

Department as long as any West Virginia business remains on its books. FEES-For receiving and filing annual statements, $10; for certificate of

authority (one for each member of firm), $5; for examinations, expenses incurred; for Auditor's services as attorney, $10 per annum (payable July I); for license to company, $10; for certificate of condition or copy of report, $5; for filing any additional paper required by law, 25 cents. Fees

payable to Insurance Commissioner. FIRE DEPARTMENT TAX-No provision. FIRE MARSHAL—The State Fire Marshal has charge of the investigation

of all fires causing damage exceeding $50, and all fires of unknown origin.


Sec. 42, relating to companies of foreign countries, provides that "every such insurance company shall, before admission to do business in this State, furnish to the Insurance Commissioner a copy

of its annual report made in the country where it was organized, and it shall furnish annually

a statement of its affairs in the United States GENERAL PENALTY-For offenses for which no specific penalty is pro

vided, a fine not exceeding $500.








IMPAIRMENT-No specific limit permitted. Domestic stock company must

make good any impairment ascertained to exist. Sec. 39. (Mutual company.) "If the assets, less the unsettled claims and other absolute liabilities amount to less than the sum requisite for reinsurance, he (the Insurance Commissioner) shall call upon it to make up such deficiency within such reasonable time as he shall fix." On failure of company to comply with such requirement, he shall apply for an injunction to restrain it from

doing further business, and shall revoke its license. INVESTMENTS PRESCRIBED—The capital of a domestic company or the

deposit required of a foreign company may be invested in stocks or bonds of some one or more of the States of the United States, or in the bonds of the United States, or in bonds secured by mortgage or deed of trust on real estate, worth double the amount loaned thereon, free from any prior

incumbrance, and having undoubted title. LICENSED BROKERS—No provision. See “Agents' Licenses.' LIMIT ON A SINGLE RISK—Chap. 34, Sec. 46. “No such insurance com

pany shall insure against loss by fire or inland navigation nor expose itself to any such loss by any one risk, for any greater amount in proportion to its

capital than companies which are organized under the laws of this State.” LLOYDS—Chap. 34, Sec. 76. “Whenever the word company is used in this

act it shall be held to include corporations, associations, partnerships or

individuals." MISCELLANEOUS-Sale of stock and incorporation of company is properly

supervised by an act effective May 7, 1913. MUTUAL COMPANIES—Provision is made for organization of farmers

and other mutual companies. Policy must specify amount of insured's li

ability. Mutual companies must report to the Auditor. PRELIMINARY DOCUMENTS—Company must file with the Insurance

Commissioner a copy of its charter or articles of association, and a statement showing its financial condition and obtain a certificate of

authority to do business in the State. PUBLICATION-Not required. RECIPROCAL LAW-No provision, except that mutual companies of West

Virginia must be permitted to do business in any State in which a mutual

company seeking admission to West Virginia is located. REINSURANCE—Chap. 16, Acts 1901, Sec. 2. “Every life or other insur

ance company which shall, in any manner whatsoever, accept the whole or any part of a risk on property located in this State, and shall transfer in any manner whatsoever to any company not authorized to transact business in this State, any risk or liability assumed by said first named company, or any part thereof, shall be liable to the penalty provided for under Sec. 7 of this act.” Penalty for violation, $100 to $500; penalty for non-payment of fine within thirty days, revocation of license for one year, and until judgment is paid. Reinsurance policies need not be signed by resident agents. All reinsurance must be reported annually. Deduction of reinsurance premiums received in the statement of premiums for taxation is permitted

when taxes are paid by the reinsuring company. REINSURANCE RESERVE–Fifty per cent of premiums on fire risks not

perpetual, and ninety-five per cent on perpetual risks; 100 per cent of ocean

marine premiums, and forty per cent of time hull premiums. RESIDENT AGENTS—Chap. 16, Acts 1901, Sec. 1. “That no fire or other

insurance company or association not incorporated under the laws of this State, authorized to transact business herein, shall make, write, place, or cause to be made, written or placed, any policy, duplicate policy, or contract of insurance of any kind or character, or a general or floating policy upon property situated or located in this State, or upon life, except after the said risk has been approved in writing by an agent who is a resident in this State, regularly commissioned and licensed to transact insurance business herein, who shall countersign all policies so issued, and receive the commission thereon when the premium is paid, to the end that the State may receive the taxes required by law to be paid on the premiums collected for insurance on all property located in this State, and that no person shall pay or forward any premiums, applications for insurance, or in any manner secure, help or aid in the placing of any fire or other insurance, or effect any contract of insurance upon real or personal property, or upon life within this State, directly or indirectly, with any insurance company or association not of this State, or which has not been authorized to do business in this State.” Sec. 6, excepts railroad property and property in transit. Penalty for violation, $100 to $500, and non-payment of judgment for thirty days is punishable by revocation of license for one

year and until such judgment has been paid. SEMI-ANNUAL STATEMENTS—None required, except tax statements

in Wheeling STANDARD POLICY—New York form is prescribed to be used, "with such

changes and additions as the Insurance Commissioner may deem proper.” TAXES—A tax of two per cent is levied upon the gross premiums collected in

the State, less premiums returnable for cancellation, by all foreign insurance companies, payable March 1. A bond may be required to secure the payment of the tax. Property of companies is taxed as is other property. Taxes payable to Insurance Commissioner. The law creating the office

of fire marshal provides for a tax of one-half of one per cent on net fire premiums received in West Virginia during the preceding year, payable into the State Treasury on or before March 1, annually, for the mainte

nance of the office. See "Reinsurance.” TAX STATEMENTS—State, must be filed by January 31. City of Wheel

ing, must be filed by January 15 and July 15, for the periods or six months

next preceding those months, respectively. VALUED POLICY_Chap. 33, Acts of 1899. “All fire insurance companies

doing business in this State shall be liable, in case of total loss by fire or otherwise, as stated in the policy on any real estate insured, for the whole amount of insurance stated in the policy of insurance upon said real estate; and in case of partial loss by fire or otherwise, as aforesaid, of the real estate insured, the basis upon which said loss shall be computed, shall be the amount stated in the policy of insurance effected upon said real estate, and the insured shall have the right to enforce his claim for said loss in any court having jurisdiction." This law was understood to have been repealed in 1907, but in April, 1912, the Auditor of State wrote, that “on April 17, 1912, this law was upheld as being in force by the Supreme Court of Appeals of West Virginia.”



MUNICIPAL TAXES AND FEES. BLUEFIELD—For each company, $10.50, payable July 1. CHARLESTON—For each company, $10,50, payable July 1. CHARLESTOWN-For each company, $12.50, payable July 1. HUNTINGTON-For each company, $5.50, payable July 1. MARTINSBURG-For each company, $20, payable January 1. MORGANTOWN-For each company, $5. PARKERSBURG-For each company, $5.50, payable July 1. WHEELING-On gross premiums, one-half per cent, payable July 15 and

January 15. See "Tax Statements."

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STATE REQUIREMENTS. AGENTS DEFINED—Sec. 1977, Statutes of 1898 (as amended in 1905).

“Every person or member of a firm or corporation who solicits insurance on behalf of any insurance corporation or person desiring insurance of any kind, or transmits an application for a policy of insurance, other than for himself, to or from any such corporation, or who makes any contract for insurance, or collects any premium for insurance, or in any manner aids or assists in doing either, or in transacting any business of like nature for any insurance corporation, or advertises to do any such thing, shall be held to be an agent of such corporation to all intents and purposes, unless it can be shown that he receives no compensation for such services. Chap. 316, Laws of 1913, provides for the licensing of adjusters and includes everyone who act as advisors to insured or insurer for compensation. This section shall not apply to agents of lincensed fraternal beneficiary societies, or mutual fire insurance companies of this State, except

those organized under Secs. 1896, 1897 and 1898." AGENTS' LICENSES—Agents of companies required to pay any tax or li

cense fee to the State must procure from the insurance corporation licenses which expire January 31 in each year. Chap. 290, laws of 1909. Sec. 1976. “No person, officer or broker, agent or sub-agent of any insurance corporation of any kind required to pay *** any tax or license fee to the State, shall act or aid in any manner in transacting the business of or with such corporation in placing risks or in collecting any premiums or assessments or effecting insurance therein, without first procuring from the insurance corporation a certificate of authority; nor shall any such person, officer, broker, agent or sub-agent, after such certificate shall have expired, or after revocation by the Commissioner of Insurance of such certificate or of the license of such corporation and until a new certificate or license shall have been issued to him, do or perform any such act for or in behalf of any insurance corporation." Chap. 116, laws of 1909. Sec. 2. “No such certificate shall be issued by any other than the officers or resident agent of such corporation signing the policies of insurance issued by it or a person duly authorized thereto in writing by such officers or resident agent, after a copy of such authority has been filed in the office of the Commissioner of Insurance; nor unless the same shall be in such form as prescribed by the Commissioner of Insurance and numbered consecutively as issued by the person authorized thereto, and a statement or statements of the names and residences of all persons to whom such certificates are issued on any day, in such form as prescribed by the Commissioner, together with the fees provided for certificates to agents by Sec. 1972, shall be mailed to said Commissioner on the day such certificates

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