must have in lieu of such capital stock available cash assets of at least $200,000.00 above all liabilities for losses reported, expenses, taxes, and re-insurance of all outstanding risks as provided in sections 602 and 602a of the Political Code.

Amended April 15, 1909; stats. 1909, p. 928; in effect in sixty days.

ED. NOTE. § 594. Section 2 of the act amending this section reads as follows:

SEC. 2. The provisions of this act shall not apply to life or fire insurance associations operating on the assessment plan or on the fraternal plan.

Foreign companies, deposit of securities.

$ 594a. No insurance company organized or existing under the laws of any country outside of the United States shall transact any business of insurance in the State of California without first making deposit, and thereafter continuously maintaining such deposit except as hereinafter otherwise specially provided, so long as any such business transacted in this state remains in existence for any purpose whatever, either unmatured or matured but unsettled, and whether in controversy or not. Such deposit must be of securities which the law of California permits for the investment of the assets of such California insurance companies. Such deposits may be with the insurance commissioner or superintendent of insurance, or with the auditor, comptroller or general fiscal officer of any state in the United States in which said foreign company is authorized to do such insurance business, or a like amount held in trust for the purposes herein specified as provided for by the laws of that state. The amount of the deposit must be equal to the minimum amount of the capital stock or available cash assets required by the preceding section and must be maintained exclusive of all liabilities for losses reported, expenses, taxes and reinsurance of all outstanding risks, as provided in sections 602 and 602a of the Political Code. Such deposits, for all purposes of the insurance laws of this state may be treated as a part of the capital of the company making it.

If such deposit is not so maintained in the State of California, its existence in some other state of the United States shall be certified at least annually to the insurance commissioner of the State of California by the superintendent of insurance or commissioner of insurance or auditor, or comptroller, or general

fiscal officer of the state in the United States wherein such deposit is so maintained, and also so certified oftener and whenever from time to time required by the insurance commissioner of the State of California, and such certificate shall show in detail of what such deposit consists.

None of such securities so deposited shall be estimated above the par value of the same nor above the market value. Such deposits must be for the benefit and security of all the policy holders of the company in the United States. Such securities so deposited with the insurance commissioner of the State of California shall be by him specially deposited in the state treasury in packages marked with the name of the company from whom received, and so long as the company continues solvent it shall be permitted to collect the interest or dividends on the securities so deposited, and from time to time to withdraw such securities on depositing other securities in the stead of those to be withdrawn, such new securities to be of the character and value specified in this section, but none of such securities shall be withdrawn from the state treasury except upon the written order of the company making the deposit, which order must be indorsed by the insurance commissioner of the State of California or else such withdrawal must be had under the authority of some court of competent jurisdiction, which must be obtained if the insurance commissioner for any reason refuses to so indorse said order. Whenever such deposit has been made with the insurance commissioner of the State of California as provided in this section, said commissioner must issue to the company so depositing, a certificate under his official seal stating the items and amount of securities so deposited, and their value, to the best of his knowledge, information and belief, and in case of withdrawal and substitution, he shall issue suitable supplemental similar certificate. None of the provisions of this section shall affect the present statutes of California, either as to registered policies, or under what is known as the retaliatory law, or otherwise, either as to papers, bonds, or other securities.

Amended April 15, 1909; stats. 1909, p. 910; in effect in sixty days.

General duties of commissioner-Companies may surrender certificate; manner of.

§ 595. The insurance commissioner must receive all bonds and securities of persons engaged in the transaction of insur

ance business in this state, and file and safely keep the same in his office, or deposit them as provided by law. He must examine and inspect the financial condition of every company engaged, or which desires to engage in the business of insurance and issue a certificate of authority to transact insurance business in this state to any company in a solvent condition which has fully complied with the laws of this state. He must 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. He must make, on or before the first day of August in each year, a report to the governor of the 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 verified statement of the moneys and fees of office received by him, and for what purpose, and the printing of said report and all other printing required by the insurance department shall be exempt from the provisions of article XII, chapter III, title I, part III of the Political Code. Any insurance company may pay the fees and costs therefor and may surrender to the insurance commissioner its certificate of authority previously granted, and apply to withdraw from this state, such application to be in the form of a written instrument, duly executed, and accompanied with evidence of due authority for such execution, and such written instrument to be properly acknowledged. The commissioner, at the expense of the company, paid by it in advance, must make due publication of such application for withdrawal, daily, for the period of one week, in each of two daily newspapers of general circulation, the one published in the city of San Francisco, and the other in the city of Sacramento. The commissioner must make such examination of the books of such company as may be necessary to ascertain that such company has no liabilities outstanding and not paid to residents of this state and no uncanceled policies in favor of residents of this state and if he finds that such company has no outstanding liabilities to residents of this

state and no uncanceled policies in favor of the residents of this state, he shall cancel such certificate of authority. All such examinations must be at the expense of the company, and such expense must be paid in advance.

Enacted March 8, 1907; stats. 1907, p. 145.

VII Cal. App. Dec. 2, 3.

Certificate to do business-Licenses to procure insurance in companies not authorized to do business-Affidavit requiredAccount of business-Bond of licensee-Examination policies issued by licensee.

of

§ 596. No company shall transact any insurance business in this state without first complying with all the provisions of the laws of this state and thereafter procuring from the insurance commissioner a certificate of authority and continuing to comply with the laws of this state; provided, that insurance in companies not authorized to transact business in this state may be placed upon the terms and conditions in this section hereafter set forth. Such certificate of authority shall expire on the first day of July after it is issued unless sooner revoked, and must be renewed annually. No certificate of authority shall be granted or renewed to any company in arrears to the state, or to any county or city of the state, for fees, licenses, taxes, assessments, fines or penalties accrued upon business previously transacted in the state nor while the company is otherwise in default for failure to comply with any of the laws of this state regarding the government and control by the state, of such company, and all such authorizations and certificates of authority heretofore granted shall expire on July 1st, 1907.

The insurance commissioner may issue a license to any citizen of this state, subject to revocation at any time, permitting the person named therein to procure policies of insurance on risks located in this state for companies not authorized to transact business in this state, and for such license the insurance commissioner shall collect a fee of fifty dollars for each such license and renewal thereof and each such license and renewal shall expire on the first day of July unless sooner revoked. Before the person named in such license shall procure any insurance in such company he shall in every case execute and file with the insurance commissioner an affidavit that he is unable to procure, for a specified person, firm or corporation, in a majority of the companies authorized to do business

Every per

in this state the amount of insurance necessary. son so licensed shall keep a separate account of the business done under said license, open at all times to the inspection of the insurance commissioner, and shall file a certified copy thereof forthwith with the insurance commissioner, showing the exact amount and character of such insurance placed for any person, firm, or corporation, the gross premiums charged thereon, the companies in which the same is placed, the dates of the policies and the terms thereof, the location of the insured property and also a report in the same detail of all such policies canceled and the gross return thereon. Before receiving such license the person licensed shall execute and deliver to the insurance commissioner a bond to the people of the State of California in the penal sum of twenty thousand dollars, with such sureties as the commissioner shall approve, conditioned that the licensee will faithfully comply with all the requirements of this section, and will file with the insurance commissioner on or before the first day of March of each year, a sworn statement of the gross premiums charged for insurance procured or placed, and the gross return premiums on such insurance canceled under such license during the year ending on the thirty-first day of December last preceding, and will pay to the insurance commissioner of the State of California, for the use and benefit of said state, an amount equal to four per cent of such gross premiums less such return premiums so reported, and in default of the payment of any sum imposed by this section, the said insurance commissioner may sue for same in any court of record in this state. Any person, firm, company or corporation for whom such insurance as herein specified shall have been effected, whenever required by the insurance commissioner so to do, shall produce for examination by him the policy or policies issued for such insurance, and disclose to him the true amount of the gross premiums agreed to be paid therefor, and upon refusal so to do shall forfeit to the State of California for each such refusal the sum of two hundred dollars, to be recovered in a civil action. All policies and insurance contracts issued without full compliance, by all parties concerned, with the laws of this state are null and void.

Enacted March 8, 1907; stats. 1907, p. 146.

VII Cal. App. Dec. 3.

See, also, Pen. C. § 439.