MARYLAND

SUPERVISING OFFICER, LLOYD WILKINSON, INSURANCE COMMISSIONER, BALTIMORE. Preliminary Documents.—Company must file with the Insurance Commissioner a certified copy of its charter and a certificate from the proper officer of the State wherein the company was organized showing that it is entitled to transact business; also a statement showing the condition of the company.

Attorney. A citizen of the State must be authorized to accept service of legal process. In the absence of an attorney service may be made on the Commissioner.

Funds.-Company must possess assets satisfactorily invested to the amount of

$100,000.

Companies of Other Countries.-Foreign companies must file annual statements on or before July 1.

Agents.-Agents and solicitors must obtain a certificate of authority from the Commissioner, renewable annually on January 1 of each year. Licenses for sub-agents or solicitors, $2.

Valuation of Policies.-The basis of valuation is the American Experience Table of Mortality, with interest at four and one-half per cent. Commissioner is required to accept the valuation of other State insurance officials, if made in accordance with the basis here given.

Examinations.-The Commissioner is authorized to examine a company whenever he has reason to doubt its solvency, or the correctness of any statement made by it; he must, however, first communicate his suspicions to the insurance official of the State wherein the company is organized, and shall examine if not satisfied with the information obtained.

License.-To company, $300.

Fees.-Filing charter, $25; annual statement, $25; general agents' license, $10; subagents, $2; two abstracts of annual statement for publication, $4.

Taxes.-One and one-half per cent on gross premiums. Reciprocal provision. Annual Statements.—Annual statements must be filed within ninety days from January 1 of each year, showing the condition of the company on December 31 preceding. An abstract of the statement must be published by the Commissioner prior to the 1st day of April, once a week for three weeks in a daily newspaper published in Baltimore, and the company must publish a similar abstract three consecutive times.

ADDITIONAL NOTES FROM THE STATUTES.

Application.-False statements in an application shall not void policy unless such false statement materially affects the risk. When the misstatement is in regard to age, the company required to pay according to real age at date of policy.

Discrimination.-Companies prohibited from making discriminations between insurants of the same class and expectation of life, as to rates, benefits or conditions of contract. The offense constitutes a misdemeanor, and the penalty a fine of $500 for each offense for each $25,000 of insurance, and forfeiture of license.

False Statements.-Any person, officer or examining physician making false statements for the purpose of procuring insurance, shall be held guilty of a misdemeanor. Penalty, fine not less than $100 nor more than $1000.

Miscellaneous Companies.-Every stock company must have a capital of not less than $100,000, and comply with the laws relating to fire insurance. Safety and fidelity companies must have a capital of $100,000. The Maryland Liability Act has been declared unconstitutional.

MASSACHUSETTS.

SUPERVISING OFFICER, FREDERICK L. CUTTING, INSURANCE COMMISSIONER,

BOSTON.

Preliminary Documents.-To be filed with the Commissioner. Copy of charter, certified by proper State official. Record of the organization of the corporation, certified by

Insurance Department of home State. Appointment of Insurance Commissioner of Massachusetts as attorney to accept service. Recent statement of financial condition and business of the company, verified by examination of Insurance Department of home State. Affidavit of the president and secretary that the company has not at present covered in any single hazard an amount in excess of ten per cent of its net assets, and an agreement that the company will not insure in a single hazard an amount in excess of ten per cent of its net assets, reinsurance not to be deducted in either case. Affidavit as required by chapter 537, Acts of 1898. (See page 69 of the Insurance Law of Massachusetts.)

Companies of Foreign Countries.-Companies of another country must deposit and keep available cash funds in hands of trustees equal to the net value of all its policies in the United States and not less than $200,000.

Companies of Other Countries.-Documents to be filed; companies of other countries must file with the Commissioner a copy of charter or deed of settlement, certified as true and correct by officers of the corporation and vised by American Consul. Record of the organization of the corporation, certified and vised as above. Duplicate of deed or trust and appointment of trustees, duly vised. Appointment of Insurance Commissioner of Massachusetts on blank furnished by the department as attorney to accept service, duly vised. Certified copy from home office of vote of directors or other officers authorizing deposit of securities with some one of the States of the United States, duly vised. Duplicate of contract with United States manager showing powers conferred upon him, duly vised. List of securities held by trustees, certified to by trustees. Statement of financial condition and business of the United States branch, certified to by United States manager. Certificate of party holding deposit capital, giving list of securities held. Affidavit of United States manager that the United States branch has not at present covered in any single hazard an amount in excess of ten per cent of its net assets, and an agreement that the company will not insure in a single hazard an amount in excess of ten per cent of its net assets, reinsurance not to be deducted in either case. Affidavit as required by chapter 537, Acts of 1898. Fee-For filing charter, $30; for filing statement, $20.

Valuation of Policies.-The net value on the last day of December of the preceding year of all outstanding policies of life insurance in the company issued before the first day of January, 1901, shall be computed upon the basis of the "Combined Experience" or "Actuaries' Tables" of mortality, with interest at four per cent per annum. The net value on the last day of December of the preceding year of all outstanding policies of life insurance issued after the thirty-first day of December, 1900, shall be computed upon the basis of the "American Experience Table" of mortality, with interest at three and onehalf per cent per annum; but any such life company may, at any time, elect to reserve upon a three and one-half per cent basis, and thereupon its policies, issued upon such reserve, shall be computed upon the basis of the "American Experience Table" of mortality, with interest at three per cent per annum.

Annual Statements.—Annual statements must be filed with the Commissioner on or before January 15, showing the condition of the company at the close of the previous year and its business transactions. The time may, however, be extended for cause, but not later than February 15.

Agents.-Agents must have license from the Commissioner renewable annually, and must make a return by November 15 to the Tax Commissioner of all business transacted during the year ending October 31 preceding.

Examinations.-The Commissioner is authorized to examine into the affairs of any company at any time, and for cause revoke its authority to do business in the State.

Fees. For valuation of life policies of a domestic company, two and one-half mills for each thousand dollars of insurance; for each examination of a domestic company's qualification to transact business, $30; or filing copy of charter or deed of settlement of each foreign company, $30; for filing statement with application for admission and for each annual statement, $20; for each license of an insurance broker, $10; for each license or renewal therefor, to an insurance agent, $2; for each certificate of the valuation of the policies of any life insurance company, and for each certificate of examination, condition

or qualification of an insurance company, $2; for each service of lawful process upon him as attorney, $2; for each copy of any paper on file in his office, 12 cents a page and $1 for certifying the same.

Taxes.-Every company must pay an excise tax of one-quarter of one per cent upon the net value of all policies in force on December 31 preceding, held by residents of the State; company or its general agent must report on or before May 10 of each year to the Tax Commissioner the number, date and class of policies so held, ages of the assured, net value of each policy and their aggregate net value, upon which the tax shall be assessed. An additional tax of two and one-half mills upon each $1000 of insurance is charged. Reciprocal provisions.

Penalties.-Contract issued by a company doing business without authority shall be valid, but the agent issuing such contract is liable to a fine not exceeding $500; agent doing business without procuring certificate, or failing to make returns, liable to a fine of $500; agent or other persons making false representations for the purpose of obtaining a fee, commission or other benefit is guilty of a misdemeanor, punishable by a fine of not less than $100 nor more than $500, or imprisonment not less than thirty days or more than one year, or both fine and imprisonment. Any company failing to make returns to the Tax Commissioner shall forfeit $50 for each day's neglect. Commissioner authorized to extend time on application. For making a false statement a company incurs a penalty of not less than $500 or more than $5000. Company failing to file annual statement within the prescribed time is liable to a penalty of $100 for each day's neglect, and while in default the transaction of new business is unlawful.

ADDITIONAL NOTES FROM THE STATUTES.

Application by Insured.-No policy may be issued except upon application of the person insured.

Copy of Application.-Every person taking out a policy of insurance upon his life is entitled to receive with the policy a copy of the application made by him, attached to the policy.

Discrimination.-Any distinction or discrimination in favor of individuals between insurants of the same class and equal expectation of life, as regards rates, dividends or benefits, is prohibited. Discrimination against colored persons, wholly or partially of African descent, is also prohibited. Companies and agents are prohibited from offering, or paying, or allowing as an inducement to insurance, any rebate of premium, or any special favor in dividends or benefits.

False Statements by Solicitor, Agent or Physician.-Any solicitor, agent, examining physician or other person, knowingly or wilfully making false statements in reference to an application for insurance, for the purpose of obtaining a fee, commission, money or other benefit, shall be deemed guilty of a misdemeanor.

Miscellaneous Companies.-Title guarantee companies must have at least $200,000 capital. Casualty companies, except plate glass, $100,000, must have $200,000 capital. Miscellaneous companies writing burglary insurance are required to have a capital equal to that required of companies writing this line separately. All returns for Taxation made to Tax Commissioner. Fidelity companies must secure annual renewal of license and have $100,000 on deposit with the State Treasurer of some State.

Paid-up Policies.-After a life policy has been in force three years it shall not be forfeited for non-payment of premium, but a paid-up policy shall be issued for such an amount as the reserve, less surrender charge, etc., taken as a single premium, will purchase.

Policies Issued Without Knowledge of the Insured.—Where a policy is issued upon the life of a minor, without the consent of the parent, or guardian, or upon the life of the person without his knowledge, statements made in the application as to age, physical condition and family history shall be held to be valid and binding upon the company.

The Policy Must Show on its Face its Character.-Every policy issued must bear in bold letters upon its face a plain description of its character, giving dividend periods and other peculiarities.

SUPERVISING OFFICER, JAMES V. BARRY, COMMISSIONER of Insurance, Lansing. Preliminary Documents.—Every company must file a copy of its charter and a sworn statement giving the name, location, capital and condition of the company; also a copy of its last annual report.

Attorney.-Company must appoint an attorney to accept legal process, and must file a stipulation agreeing that legal process served upon the Commissioner or his deputy shall be binding upon the company.

Agents.-Agents are required to obtain license. Fees in accordance with retaliatory

provisions.

Funds.-Company must possess at least $100,000, properly invested and deposited with the proper officer of the State in which such company is located, to be held in trust for the benefit of all policyholders.

Companies of Other Countries.-Foreign companies must have a deposit of $200,000 with the proper officer of some State for the benefit of all its policyholders, and furnish certificate of such officer.

Valuation of Policies.-Basis of valuation is the American Experience Table of Mortality, with interest at four per cent.

Annual Statements.- Annual statements must be filed in the month of January of each year, showing the condition of the company on December 31 preceding.

Examinations. Whenever the Commissioner shall deem it expedient he may examine any company doing business in the State, and if he deems it for the best interest of the public, he may publish the result in one or more newspapers.

Fees. For valuation of policies, one cent for every $1000 of insurance; examination of companies, actual expenses incurred and $10 per day for services. Reciprocal provisions regulate other fees.

Licenses.-Company must obtain license from the Commissioner before commencing

business.

Taxes.-Company required to make sworn return to the State Treasurer of the gross premiums received in the State during the preceding year, and shall, at the time of filing its annual statement, pay a tax of two per cent on all premiums received in cash or otherwise. This tax in lieu of all other taxes.

Penalties.-Companies doing business without complying with the law subject to a penalty of $100 for every application obtained or contract made. Any person soliciting business or making any insurance contract before complying with the law of the State liable to a penalty of $100 for every application obtained or contract made. And any person who may have paid money for such contract will be entitled to recover the same from the person to whom it is paid.

ADDITIONAL NOTES FROM THE STATUTES. Discrimination.-Discrimination between insurants of the same class and equal expectation of life as to rates, benefits or conditions of contract is prohibited.

False Representations.—Any medical examiner knowingly making false statements for the procurement of insurance shall be deemed guilty of a misdemeanor. Penalty, fine not exceeding $100, or imprisonment not exceeding three months, and shall be liable to the company in the full amount of any insurance obtained from it by the assistance of such false reports.

Miscellaneous Companies.-Fidelity companies must have $250,000 capital and a deposit of at least $200,000 in not more than two States for the benefit of all policyholders; plate glass, accident, steam boiler and live stock insurance companies must have a capital of $100,000, and a deposit of at least $100,000 in some State for the protection of all policyholders. Such companies must conform, as far as practicable, with the laws governing life insurance companies; must maintain a reserve of fifty per cent of premiums on all risks, and pay tax at the rate of two per cent on all premiums received during the year.

In addition to the fifty per cent reserve, employers' liability companies are required to set aside forty per cent of each year's premiums, less the amount paid for losses, under policies issued during such year, this reserve to be computed for five years.

MINNESOTA.

SUPERVISING OFFICER, ELMER H. DEARTH, INSURANCE COMMISSIONER,
ST. PAUL.

Preliminary Documents.-Company must file a certified copy of its charter and a statement showing the condition of the company.

Attorney.-Company must designate the Insurance Commissioner as attorney to accept service of legal process.

Funds.-Company must possess available assets, properly invested, to the amount of at least $100,000.

Companies of Other Countries.-Company must furnish a certificate from the proper official of some State, showing that the company has on deposit for the benefit of all policyholders of the company securities to the amount of $100,000, or, failing to furnish such certificate, such deposit must be made with the Commissioner of the State.

Valuation of Policies.-The basis of valuation is the American Experience Table of Mortality, also the Actuaries' and Combined Experience Table, with interest at 4 per cent.

Annual Statements.-Annual statement must be filed on or before February 15th, showing the condition of the company on December 31 preceding. Such statements must be published at least three times in two daily newspapers of general circulation, published in Hennepin and Ramsey counties, having a circulation of 2000 copies or more; or if a Minnesota company, where the home office of the company is located.

Agents. Every agent must procure a certificate of authority from the Commissioner, to be renewed annually within sixty days from January 1 of each year. In all advertisements of the company or agency the name and location of the company must be given. Agents must be residents of Minnesota.

Examinations.-The Commissioner is authorized to examine any company whenever he deems it necessary in the interests of policyholders. He may suspend its license whenever its assets appear to him unsafe to justify its continuance of business.

Fees. For filing certified copy of charter, $30; filing annual statement, $20; issuing certificate of authority and certified copies thereof, $1 each; copies of papers on file, 20 cents per folio; certifying same, $1; valuing life policies, one cent per thousand of insurance or fraction thereof; examination of companies, actual expenses incurred by Insurance Commissioner or his deputy and the expenses and compensation of his assistants employed. Other or additional fees regulated by reciprocal provision.

Licenses.-See Agents.

Taxes.-A tax of two per cent is imposed upon all premiums collected within the State during the preceding year, which must be paid to the Insurance Commissioner annually when the certificate of authority is issued. Other or additional taxes regulated by reciprocal legislation.

Penalties.-Doing business as an agent without a license subjects the offender to a fine not exceeding $500. Neglect of company to transmit statement incurs a forfeiture of $100 for each day's neglect. A company wilfully making a false statement is liable to a penalty of from $100 to $5000. A company obstructing the Commissioner incurs a penalty of $1000.

ADDITIONAL NOTES FROM THE STATUTES.

Character of Contract.-Every policy must bear upon its face, in bold letters, a description of its character, dividend periods, etc.

Discrimination.-Discrimination between insurants of the same class and expectation of life, as to rates, benefits or conditions of contract is prohibited; also discrimination