Attorney general to examine documents. § 596a. Before the insurance commissioner issues any certificate of authority or any other certificate or gives any permission or authority of any kind, based upon any written instrument or document or certified copy thereof, required by the statutes of the State of California, the commissioner shall submit such instrument, document or certified copy to the attorney general of the State of California, who shall examine the same and return it to the commissioner with his certificate or opinion as to whether such instrument, document or certified copy is in accordance with the requirements of law, and such certificate or opinion of the attorney general shall govern and control the commissioner, subject only to review by a court of competent jurisdiction; provided, that neither the authority to nor bond of an agent or solicitor, nor the annual statements as to the condition and affairs need, but may, be so submitted (with the same effect) by the commissioner to the attorney general. Enacted March 8, 1907; stats. 1907, p. 147. Examination of companies alleged to be insolvent-Inspection of books. § 597. The commissioner, whenever he deems necessary, or whenever he is requested by verified petition, signed by twentyfive persons interested, either as stockholders, policyholders, or creditors of any company engaged in insurance business in this state, showing that such company is insolvent under the laws of this state, must make an examination of the business and affairs relating to the insurance business of such company, and must make such an examination whenever any company is organized to do insurance business in this state, and before issuing a certificate of authority other than renewals to such company, and may make such examination whenever any company not organized under the laws of this state applies for a certificate to do insurance business in this state, and before issuing a certificate of authority to such company; and for such purposes shall have free access to all the books and papers of such company, and must thoroughly inspect and examine all its affairs, and ascertain its condition and ability to fulfill its engagements, and that it has complied with all the provisions of law applicable to its insurance transactions. Such company must open its books and papers for the inspection of the commissioner, and otherwise facilitate such examination; and the commissioner may administer oaths and examine under oath any person relative to the business of such company; and if he finds the books to have been carelessly or improperly kept or posted he must employ sworn experts to re-write, post and balance the same at the expense of such company. Such examination must be conducted in the county where such company has its principal office, and must be private, unless the commissioner deems it necessary to publish the result of such investigation, in which case he may publish the same in two of the public newspapers of this state, one of which must be published in the city of San Francisco. Whenever the commissioner shall deem such examination necessary, the same must be at the expense of the company, such expense to be paid in advance, and if any such company refuses to pay such expenses in advance the insurance commissioner may refuse to issue any such certificate of authority and must revoke any existing certificate of authority authorizing such company to do business. Enacted March 8, 1907; stats. 1907, p. 147. Policyholders may secure information about policies-Company must make statement-Lost policy, stay of rights. § 598. Any person interested in, as owner, assignee, pledgee or payee, of any policy of insurance and desiring any information about such policy, may file with the insurance commissioner an affidavit showing that he is entitled to the benefits of the provisions of this section and apply to the insurance commissioner for his certificate of the facts or information desired. If the records of his office show the facts or information desired, the insurance commissioner shall prepare his certificate reciting such facts or information. If his records do not show the facts or information desired the insurance commissioner may deliver an order to the agent of the company, designated under section six hundred and sixteen of the Political Code, directing such company to state such information or facts in an affidavit and deliver such affidavit to him. In such affidavit the company must make a full, true and correct statement of all the said facts and information in the possession of said company, whether such information be contained in the books, records, or papers in this state or in any other state or country. If such company neglects or refuses to make and deliver such affidavit to the insurance commissioner within ninety (90) days from the date of the delivery of the said order by the commissioner to the said agent as herein provided, the commissioner must revoke the cer tificate of authority authorizing the company to do business in this state. Immediately after receiving any affidavit from any insurance company pursuant to the provisions of this section the commissioner must certify such affidavit to the person so applying for the information or facts. Such affidavit so certified by the insurance commissioner shall be delivered to the applicant by delivering it to him personally or by depositing the same in the United States post office and prepaying the postage thereon. If a loss has been sustained under any policy of insurance and such policy has been lost or destroyed all rights of every kind and nature and the time for the presentation of notice of loss and the time for the presentation of proof of loss are stayed from the date such interested person delivers to the commissioner the affidavit herein provided for and until five days after the date of the delivery by the insurance commissioner to such interested person of any affidavit furnished by any insurance company pursuant to the provisions of this section. Enacted March 8, 1907; stats. 1907, p. 148. Subpoena. $599. The commissioner may issue subpoenas for witnesses to attend and testify before him on any subject touching insurance business, or in aid of his duties, which may be served, obeyed, and enforced as provided in the Code of Civil Procedure for civil cases, and the commissioner may issue attachments and impose the same penalty which a court might impose for disobedience; and, in addition, the defaulting witness may be punished as provided in the Penal Code. Enacted March 8, 1907; stats. 1907, p. 149. Records of commission. § 600. The commissioner must keep and preserve in a permanent form a full record of his proceedings, including a concise statement of the condition of each company visited or examined by him. Enacted March 8, 1907; stats. 1907, p. 149. Restoration of authority after revocation. [Repealed.] § 600a. Restoration of authority after revocation. [Repealed April 15, 1909; stats. 1909, p. 913; in effect in sixty days.] ED. NOTE. § 600a. Section 3 of the act repealing this section and enacting section 603a reads as follows: "SEC. 3. Nothing herein contained shall affect any rights acquired under said section 600a, but all such rights shall be preserved under the provisions of said section 603a." Employment of actuary. § 601. The commissioner may employ an actuary to make the valuation of life policies at a compensation of not exceeding one cent for each thousand dollars of insurance, to be paid by the company for which the valuation is made. Enacted March 8, 1907; stats. 1907, p. 149. What constitutes insolvency. § 602. Whenever provisions for the liabilities of any company engaged in the business of fire, marine, or inland navigation insurance in this state, for losses reported, expenses, taxes and reinsurance 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 its capital paid in as to reduce the same below two hundred thousand dollars, or below seventy five per cent of said capital paid in, such company is insolvent; and in case of a company engaged in such insurance in this state, on the mutual plan, if the available cash assets of such company shall not exceed its liabilities, as hereinbefore enumerated, in the full sum of two hundred thousand dollars, such company is insolvent; and wherever provision for the liabilities of any company engaged in the business of insuring any one against loss or damage resulting from accident to or injury suffered by an employee or other person for which the person insured may be liable, for losses reported, expenses, taxes, and reinsurance of all outstanding risks estimated as provided in section six hundred and two a of the Political Code would so far impair its capital paid in as to reduce the same below one hundred thousand dollars, or below seventy-five per cent of said capital paid in, such company is insolvent; and whenever provision for the liabilities of any company engaged in any kind of insurance business in this state, other than life, liability, and insurance of titles to real estate, provided for in section five hundred and ninety-four of the Political Code of this state, for losses reported, expenses, taxes, and reinsurance 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 its capital 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 company is insolvent; and in case of a company engaged in such insurance business in this state, on the mutual plan, if its available cash assets shall not exceed its liabilities, as herein before enumerated, in the full sum of one hundred thousand dollars, such company is insolvent. In the case of a company engaged in the business of life insurance, whenever its liabilities for losses reported, expenses, taxes, and reinsurance of all its outstanding risks written prior to January 1st, eighteen hundred and ninety-two, at the rates based upon the American experience table of mortality with interest at the rate of four and one half per cent per annum, and reinsurance of all its outstanding risks written from and after the thirty-first day of December, eighteen hundred and ninety-one, up to and including the thirty-first day of December, nineteen hundred and seven, at rates based upon the combined experience or actuaries table of mortality with interest at the rate of four per cent per annum, and reinsurance of all its outstanding risks written from and after December thirty-first, nineteen hundred and seven, at rates based upon the American experience table of mortality with interest at the rate of three and one half per cent per annum, exceeds its assets such company is insolvent. In the case of a company engaged in the business of insurance of the title to real estate, whenever provision for its liability for losses reported, expenses, and taxes, would, after exhausting its surplus fund required by section four hundred and thirty-two of the Civil Code, or otherwise, so far impair its capital stock paid in as to reduce the same below one hundred thousand dollars, or below seventyfive per cent of said capital paid in, such company is insolvent. The provisions of this act shall not apply to life or fire insurance associations operating on the assessment plan or on the fraternal plan. Amended April 15, 1909; stats. 1909, p. 915; in effect in sixty days. How condition of company shall be estimated-How reserve to be computed. § 602a. In estimating the condition of any company engaged in the business of liability insurance under the provisions of this article the insurance commissioner shall charge as liabilities all outstanding indebtedness of such company, and the premium reserve on policies in force, equal to the unearned portions of the gross premiums charged for covering risks, computed on each respective risk from the date of the issuance of the policy. There shall also be charged as a liability to each company |