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FIRE INSURANCE LAWS, TAXES AND FEES.
RECIPROCAL LAW-Sec. 1221, Statutes of 1898. “Whenever the laws of
any other State of the United States shall require of life, fire, accident or inland navigation insurance companies organized under the laws of this State and doing business in such other State any deposit of securities for the protection of their policyholders or otherwise, or any payment of taxes, fines, penalties, certificates of authority, license fees or otherwise, greater than the amount required by the laws of this State for the same purposes from similar companies organized under the law of such other State, and doing business in this State, then all sucii companies of such other States doing business within this State shall make the same deposit with the State Treasurer, and shall pay him the same sum for taxes, fines, penalties, certificates of authority, license fee or otherwise, as a condition to the issue of a
license to them as is required to be paid by the laws of such other State." REINSURANCE-Sec. 1905, Laws of 1913. "1. Any insurance company or
association authorized to transact business in this State may, unless otherwise provided by law, assume as a reinsurer the whole or any part of the liability of any other company or association upon such risks as it may insure direct; and may, unless otherwise provided by law, cede to and reinsure in any other responsible company or companies, whose capital and surplus shall equal or exceed the minimum of capital and surplus required by domestic companies, for the transaction of similar business, the whole or any part of its liability upon risks assumed.
“2. But no tock fire insurance or fire reinsurance corporation shall expose itself to any loss on any one risk or hazard to an amount exceeding ten per centum of its paid-up capital and surplus. No portion of any such risk or hazard which shall have been reinsured as authorized by law shall be included in determining the limitation of risk prescribed by this section.
"3. No fire insurance or fire reinsurance corporation or association shall assume as reinsurer or otherwise, in any manner or form whatsover, the whole or any part of any risk or liability covering property located within this State of any fire insurance or fire reinsurance corporation or association not authorized to transact business in this State.
“4. The receiver of any insurance company, when authorized by the court to do so, may reinsure all its risks in any solvent corporation authorized to do a similar business in this State, if the assets of the corporation of which he is receiver are sufficient to effect such reinsurance; if such assets are insufficient the receiver, upon the like consent, may reinsure a percentage of each such risk of such corporation outstanding to the extent of its assets available for that purpose.
“5. Any fire insurance company or reinsurance company licensed to do business in this state, shall, on retiring from business before the expiration of its policies or contracts, file with the insurance commissioner a written notice of such intention, together with a sworn statement of its outstanding liabilities or obligations under such policies or contracts and shall reinsure such liabilities or obligations in a company authorized to do business in this State.”
REINSURANCE RESERVE-One-half of the premiums on all unterminated
fire risks, and the whole premiums on unexpired marine risks. RESIDENT AGENTS—Sec. 1919a. “1. No policy of insurance shall be is
sued or delivered in this State by any company, except through an agent who shall be a resident of this State and hold a certificate of authority under Sec. 1976, for the kind of insurance effected by such policy. 2. In case of fire insurance, the agent shall countersign and enter the policy in a permanent record to be kept by him for that purpose. Such agent shall be paid the commission on the policy. 3. The books of every person transacting or purporting to transact the business of an insurance agent shall at all times be open to the inspection of the Commissioner of Insurance, his deputy or examiners, and a refusal to permit such inspection shall be prima facie evidence of a violation of this section. 4. This section shall not prevent any insurance placed in violation thereof taking effect. 5. Any company or person soliciting or placing insurance without complying with this section shall, in addition to other penalties provided by law, be liable personally upon such policy or contract of insurance to the same extent as the company issuing the same. 6. This section shall not apply to: (a) Policies issued directly from the home office of any company organized under the laws of this State. (b) Policies covering property in transit while in the possession or custody of any common carrier, or the rolling stock or other property
of any common carrier used and employed by it as a common carrier of freight or passengers. (c) Policies issued directly, by any mutual company or any association doing business on the inter-insurance or reciprocal plan, on which no commissions are paid, except to a home office manager or an attorney in fact for such company or association, as specifically authorized by the insured.” Penalty for violation, revocation of license for from six months to three years. Sec. 1919g. “Nothing contained in Chapter 190, Laws of Wisconsin for the year 1899, shall be construed as preventing any insurance company which has lawfully issued a policy of insurance upon property within this State, from reinsuring said risk or any portion thereof, in any authorized company without having said
policy of reinsurance signed by a local agent in this State." SEMI-ANNUAL STATEMENTS—None required, except for fire patrol pur
poses. STANDARD POLICY-A standard form of policy, varying slightly from the
New York form, is prescribed to be used by all except local mutual companies. Lightning losses are covered by the standard policy, as amended in 1907. Penalty for violation, $50 to $100 for first offense, and $100 to $250 for each subsequent offense. See "Miscellaneous." Inter-insurance associations need not use standard policy form, but contract must contain in substance the provisions of the standard policy. Chap 489, Laws of 1913, requires blank form of notice of fire loss to be attached to all policies on real or personal property, to be detached and used by insured in case of fire. Policyholder preferred claimant for unearned fire premium unless otherwise agreed. Sec. 1941, Chap. 464.
TAXES—Sec. 1219, Statutes of 1898 (as amended in 1909). 1. “Every com
pany transacting the business of insurance against fire, or by the risk of inland navigation and transportation, shall pay to the State on or before the thirty-first day of January in each year, a tax of two per centum on the amount of the gross premiums received for direct insurance, less return premiums and cancellations on direct insurance, by such company during the preceding year, in this State. Direct insurance shall include all insurance other than reinsurance. In case any company shall discontinue business in this State and reinsure the whole or a part of its risks without making payment of this tax, the company accepting such reinsurance shall pay the tax; and if several companies shall make such reinsurance the tax shall be apportioned between such companies in proporportion to the original premiums upon the business, in this State, so reinsured by each such company. Upon the payment of the tax herein provided, such company may be licensed to transact its business until the last day of January in the ensuing year, unless sooner revoked or forfeited according to law.” 2. Excepting domestic mutual insurance companies included in sections 1220 or 12200 and companies heretofore organized under sections 1896 to 1900, inclusive, no domestic mutual insurance company shall be required to pay any taxes, fees, or charges to the State by reason of this or any other section of the statutes now in force or hereafter enacted unless the same shall, by specific reference to this section, expressly include such company.” Sec. 1219, Laws of 1913. 3. “All license fees and taxes levied under any portion of law against any company named in this section shall be uniformly calculated on the amount of gross premiums received for direct insurance less return premiums and cancellations and returns from savings and gains on direct insurance by such company during the preceding year in this State.” Sec. 1219m. “Any company not authorized to do business in this State, which shall insure any property situated in this State against fire or the risk of inland navigation or transportation, shall pay to this State a tax upon the gross premiums paid to such company on such insurance computed at the rate per centum prescribed by section 1219, and on default of any such company in the payment of such tax before the first day of March next succeeding, the owner of such property shall pay such tax. Every person paying more than one hundred dollars premiums to any one such company in any year shall report the same in writing by mail to the Commissioner of Insurance before the first day of March next succeeding, and if such report be not made and such tax remains unpaid for sixty days after the said first day of March, the tax shall be increased by one-tenth for every month during which such tax remains unpaid after the expiration of said sixty days.” Fire marshal tax, three-eighths of one per cent on gross
premiums less return premiums, payable through Insurance Commissioner. TAX STATEMENTS—For computation of license fee (annual statement), by
January 31; for fire department taxes, February 1; for support of fire patrols, April 1 and October 1.
VALUED POLICY—Sec. 1943, Statutes of 1898. “Whenever any policy of
insurance shall be written to insure any real property, and the property insured shall be wholly destroyed, without criminal fault on the part of the insured or his assigns, the amount of the insurance written in such policy shall be taken conclusively to be the true value of the property when insured, and the true amount of loss and measure of damages when destroyed.
COUNTY TAXES AND FEES. None.
MUNICIPAL TAXES AND FEES.
is now diverted by law to the Firemen's Relief Fund; fire department, two per cent of net premiums. Every agent must, annually, on or before February 10, file his name and address with the treasurer of the fire department.
STATE REQUIREMENTS. AGENTS DEFINED—Insurance Laws, Sec. 26.
The term agent or agents used in the foregoing section shall include an acknowledged agent or surveyor, or any other person or persons, who shall in any manner, directly or indirectly, transact or aid in transacting the insurance business of any insurance company not corporated by the laws of this State. The provisions of the foregoing section relative to foreign companies shall apply to all such companies, partnerships, associations or individuals, whether incorporated or not.
*" AGENTS’LICENSES—Agents must procure licenses, which expire annually
on December 31. Agents must give bond for $500 in fire department towns. Agency corporation will be licensed, but names of members form
ing same must be filed. ANNUAL STATEMENTS-Must be filed within sixty days after January 1,
showing condition as to previous December 31. ANTI-COINSURANCE—No law prohibiting use of coinsurance clauses. ANTI-COMPACT—No statute forbidding co-operation. ANTI-DISCRIMINATION—No provision. ATTORNEY—The Insurance Commissioner must be appointed attorney to
accept service of legal process. A resident of each county in which com
pany does business must also be authorized to accept service. CANCELLATION OF POLICY—No provision for notice to insured. CAPITAL REQUIRED—Company must possess an actual paid-up capital
of at least $300,000, exclusive of special deposits. COMMISSIONS TO NON-RESIDENTS—No provision. DEPOSIT—None required. Foreign company must have $100,000 on de
posit with the proper official of one of the States or Territories of the
United States. (Character of securities not specified.) DOMESTIC COMPANIES—Any number of persons may form a company
by publishing notice of intention once a week for four weeks in county of location, and certifying name, object, amount of capital stock and location of principal office, to the Insurance Commissioner, who shall submit certificate to the Attorney-General for approval. When approved, certificate must be recorded, as are articles of incorporation. Capital must be not less than $300,000, nor more than $1,000,000. There shall
be five to twenty-one directors. EXAMINATIONS—May be made whenever deemed expedient by the Com
missioner. Failure to pay expenses of examination will be punished by termination of business in the State. Insurance Law, Sec. 21. “The State Insurance Commissioner is hereby authorized and empowered to address