Contingent expenses. Engraving and lithographing. more sureties, to be approved by the Governor of the State, that he will faithfully perform the conditions of his contract; all bids must be for the furnishing and delivery of the paper and materials at the State Printing Office, in the City of Sacramento, so that the State shall not be charged with any cost of transportation or delivery, which must be specified in the advertisement for bids. If all the bids opened shall be deemed too high by said Board, they may decline them and advertise again. If the second set of bids are considered too high, the said Board may again decline them, and the Superintendent of State Printing may purchase such paper in open market. The prices paid shall, in no case, be higher than the lowest price at which such paper was offered to be furnished by the bids so rejected. SEC. 6. Section five hundred and thirty-six of the Political Code is hereby amended to read as follows: 536. Whenever any money is appropriated for the support of the State Printing Office, a sum not exceeding the sum of one thousand dollars thereof shall, in each fiscal year for which the appropriation is made, be applied to and used for the purpose of paying contingent expenses of State Printing Office. The Superintendent of State Printing shall keep an itemized account of all moneys expended out of the contingent fund hereby created, and shall furnish the Governor with a copy of the same, under oath, at the end of each fiscal year. SEC. 7. Section five hundred and thirty-eight of the Political Code is hereby amended to read as follows: 538. When any chart, map, diagram, or other engraving shall be required to illustrate any document ordered to be printed, such chart, map, diagram, or engraving shall be procured by the Superintendent of State Printing. No bills for engraving, or lithographing, or lithograph printing, other than the above, shall be allowed by the Board of Examiners. All State printing shall be done in the State Printing Office. SEC. 8. All Acts or parts of Acts in conflict with the provisions of this Act are hereby repealed. SEC. 9. This Act shall take effect and be in force from and after its passage. CHAP. DCXXIII.-[Duplicate of Chap. DLXVI.] CHAP. DCIV.—An Act to amend the Political Code in relation to insurance. [Approved April 1, 1878.] The People of the State of California, represented in Senate and SECTION 1. Section five hundred and ninety-five of said sioner; 595. The Insurance Commissioner must receive all bonds Insurance and securities of persons engaged in the transaction of Commis insurance business in this State, and file and safely keep the duties of. same in his office, or deposit them as provided in this Article. He must examine and inspect the financial condition of all persons engaged, or who desire to engage, in the business of insurance; issue a certificate of authority to transact insurance business in this State to any persons in a solvent condition, who have fully complied with the laws of this State, and are in nowise in arrears to the State, or to any county or city of the State, for fees, licenses, taxes, or penalties accrued upon business previously transacted in the State; determine the sufficiency and validity of all bonds and other securities required to be given by persons engaged, or to be engaged, in insurance business, and cause the same to be renewed in case of the insufficiency or invalidity thereof; and perform all other duties imposed upon him by the laws regulating the business of insurance in this State, and enforce the execution of such laws; prepare and furnish, on demand, to all persons engaged in the insurance business, blank forms for such statements or reports as may by law be required of them; make, on or before the first day of August in each year, a report to the Governor of this State, containing a tabular statement and synopsis of the reports which have been filed in his office, showing, generally, the condition of the insurance business and interests in this State, and other matters concerning insurance, and a detailed statement, verified by oath, of the moneys and fees of office received by him, and for what purpose. And whenever any insurance company, doing business in this State, shall voluntarily surrender to the Insurance Commissioner its certificate of authority previously granted, thereby withdrawing from business in this State, the Commissioner must make due publication of such surrender and withdrawal daily for the period of one week, in each of two daily newspapers, the one published in the City of San Francisco, and the other in the City of Sacramento. It is further enacted, that if any action hereafter commenced in any District Court of this State, by a citizen thereof, against a foreign corporation or company doing insurance business in this State, such corporation or company shall transfer, or cause to be transferred, such action to the United States Circuit Court, the right of such corporation or company to transact insurance business in this State shall thereupon and thereby cease and determine; and the Insurance Coinmissioner shall immediately revoke the certificate of such corporation or company authorizing it to do business in this State, and publish such revocation daily, for the period of two weeks, in each of some two daily newspapers, the one published in the City of San Francisco, and the other in the City of Sacramento. SEC. 2. Section five hundred and ninety-six of the Political Code is amended to read as follows: 596. No person must transact insurance business in this Persons to State without first procuring from the Insurance Commis- procure sioner a certificate of authority, as in this Chapter provided; certificates. and any person who, as agent, or pretended agent, of a foreign insurance company, or other person, shall, without the possession of such certificate of authority, solicit, issue, or procure to be issued, in this State, any policy of insurance by such foreign insurance company, shall forfeit to the people of this State the sum of two hundred dollars for each and every policy so issued or procured to be issued. But any company or corporation belonging to any other State or count[r]y having policies of life insurance outstanding in this State, and that were issued in accordance with the laws of the State, shall have the right to maintain a special agent in this State for the collection of renewal premiums on such policies, and the Commissioner is hereby authorized to issue to the duly appointed special agent of such company or corporation a certificate authorizing him to collect such renewal premiums; such certificate to be issued on the production to the Commissioner of satisfactory evidence that such company or corporation is authorized to transact life insurance Agent to file business in the State or count[r]y to which it belongs. And penalty for any person who, as agent of either the insurer or the insured, shall collect such renewal premiums, must, on or before the tenth day of February, annually, file with the Commissioner a statement, under oath, showing the gross amount of such annual premiums collected by him during the year ending on the thirty-first day of December next preceding, and pay into the office of the Commissioner the sum of twenty dollars. Failing to make such statement and payment within the time named, such person shall forfeit to the people of the State of California the sum of one hundred dollars for each and every policy so renewed, by the payment to him of such renewal premium. All penalties and forfeitures under this section must be collected by the Insurance Commissioner, and, for the purposes of such collections suits may be instituted by him, in the name of the people of the State of California, in any Court of competent jurisdiction. report; failure. Persons when declared insolvent. SEC. 3. Section six hundred and two of said Code is amended to read as follows: 602. Whenever provision for the liabilities of any person engaged in the business of fire, marine, or inland navigation insurance in this State, for losses reported, expenses, taxes, and re-insurance of all outstanding risks, estimated at fifty per cent. of the premiums received and receivable on all fire risks and marine time risks, at the full premiums received and receivable on all other marine risks, would so far impair his capital stock paid in as to reduce the same below two hundred thousand dollars, or below seventy-five per cent. of said capital stock paid in, such person is insolvent; and in the case of a person engaged in such insurance in this State, on the mutual plan, if the available cash assets of such person shall not exceed his liabilities, as herein before enumerated, in the full sum of two hundred thousand dollars, such person is insolvent; and whenever provision for the liabilities of any person engaged in any kind of insurance business in this State, other than life, provided for in section four hundred and twenty of the Civil Code of this State, for losses. reported, expenses, taxes, and re-insurance of all outstanding risks, estimated at such rates as are accepted by the insurance authorities of the State of New York, would so far impair his capital stock paid in as to reduce the same below one hundred thousand dollars, or below seventy-five per cent. of said capital stock paid in, such person is insolvent; and in case of a person engaged in such insurance business in this State, on the mutual plan, if his available cash assets shall not exceed his liabilities, as herein before enumerated, in the full sum of one hundred thousand dollars, such person is insolvent. In the case of a company or corporation engaged in the business of life insurance, whenever its liabilities for losses reported, expenses, taxes, and re-insurance of all its outstanding risks, at rates based upon the American Experience Table of Mortality, and interest at the rate of four and one-half per centum per annum, exceeds its assets, such company or corporation is insolvent. SEC. 4. Section six hundred and eleven of said Code is amended to read as follows: sioner to corpora 611. The statements mentioned in the preceding section commismust exhibit the condition and affairs of every such corpora- publish contion, person, firm, or association, on the thirty-first day of dition of December then next preceding, and must be filed with the persons and Commissioner; and as adjusted by the Commissioner, upon tions. a proper examination of the same, must be published by such corporation, person, firm, or association, daily, for the period of one week, in some newspaper published in the city where the principal office is located. Such statement, if made by a person or corporation organized under the laws of this State, must be filed with the Commissioner on or before the first day of February of each year. If made by a person or corporation organized under the laws of any other of the States or Territory of the United States, it must be filed on or before the tenth day of March of each year. And if made by a person, or corporation organized under the laws of any country foreign to the United States, it must be filed on or before the first day of May of each year. SEC. 5. Section six hundred and twelve of said Code is amended to read as follows: what to show. 612. Such statement, if made by fire, marine, and inland Statement; insurance companies, or by companies organized under section four hundred and twenty of the Civil Code, must show: First-The amount of the capital stock of the company. Second-The property or assets held by the company, specifying: 1. The value of real estate held by such company. 2. The amount of cash on hand and deposited in banks to the credit of the company, specifying the same. 3. The amount of cash in the hands of agents, and in course of transmission. 4. The amount of loans secured by bonds and mortgages, constituting the first lien on real estate, on which there is less than one year's interest due or owing. 5. The amount of loans on which interest has not been paid within one year previous to such statement. Statement; what to show. 6. The amount due the company on which judgments have been obtained. 7. The amount of stocks of this State, of the United States, or any incorporated city of this State; and of any other stocks owned by the company, specifying the amount, number of shares, and par and market value of each kind of stocks. 8. The amount of stocks held as collateral security for loans, with the amount loaned on each kind of stock, its par value and market value. 9. The amount of interest due and unpaid. 10. The amount of all other loans made by the company, specifying the same. 11. The amount of premium notes on hand on which policies are issued. 12. All other property belonging to the company, specifying the same. Third-The liabilities of such company, specifying: 1. The amount of losses due and unpaid. 2. The amount of claims for losses resisted by the company. 3. The amount of losses in process of adjustment, or in suspense, including all reported or supposed losses. 4. The amount of dividends declared, due and remaining unpaid. 5. The amount of dividends declared, but not due. 6. The amount of money borrowed and security given for the payment thereof. 7. Gross premiums (without any deduction) and receivable upon all unexpired fire risks running one year or less from date of policy, re-insurance thereon at fifty per cent. 8. Gross premiums (without any deduction) received and receivable upon all unexpired fire risks running more than one year from date of policy, re-insurance thereon pro rata. 9. Gross premiums (without any deductions) received and receivable upon all unexpired marine and inland navigation risks, except time risks, re-insurance thereon at one hundred per cent. 10. Gross premiums (without any deductions) received and receivable on marine time risks, re-insurance thereon at fifty per cent. 11. Amount reclaimable by the insured on perpetual fire insurance policies, being ninety-five per cent. of the premiums or deposit received. 12. Re-insurance fund and all other liabilities, except capital, under the life insurance or any other special depart ment. 13. Unused balances of bills and notes taken in advance for premiums on open marine and inland policies, or otherwise, returnable on settlement. 14. Principal unpaid on scrip or certificates of profits, which have been authorized or ordered to be redeemed. 15. Amount of all other liabilities of the company, specifying the same. Fourth-The income of the company during the preceding year, specifying: 1. The amount of cash premiums received. |