Page images


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

Attorney.—The Insurance Commissioner must be appointed attorney of the company to accept service of legal process.

Funds.--A mutual company must possess assets to the amount of $200,000, and assets must equal outstanding liabilities. Stock companies of other States must possess a paidup capital of $200,000, and in addition assets equal in amount to all its outstanding liabilities.

Valuation of Policies. The basis of valuation is the Actuaries' Table of Mortality, with interest at four per cent.

Annual Statements.-Annual statements must be filed with the Commissioner on or before February 1, showing the condition of the company December 31 preceding.

Agents. The agents of foreign insurance companies, excepting steam boiler insurance companies, shall be residents of the State. No officer or agent thereof shall act or aid in any manner in the negotiation of any insurance with such company until he shall have procured from the Insurance Commissioner a license so to do. The license shall state in substance that the company is authorized to transact business in this State, and that the person named therein is the constituted agent of the company for that purpose. Such license is renewable annually on April 1.

Examinations. The Commissioner is authorized to examine into the condition of any insurance company at any time, and will revoke its license if he shall deem it for the best interests of policyholders to do so.

Fees.—For filing copy of charter, $25; filing annual statement, $15; license to company, $5; annual renewal of same, $5; license to agents, $2; annual renewal of same, April 1, $2; license to non-resident agents of steam boiler companies, $10. Reciprocal legislation.

Taxes.—Life companies must annually, on or before February 1 of each year, submit to the Commissioner a verified statement showing the gross amount of premiums received from residents of the State for the preceding year, and upon such premiums the Commissioner shall assess a tax of one per cent, and all other companies two per cent, less return premiums and reinsured business in authorized companies, which must be paid into the State treasury within thirty days after receiving notice of the assessment. Reciprocal legislation.

Penalties.-Any violation of the law relating to insurance subjects the offender to a fine not exceeding $2000 for each offense. Any person assuming to act as an agent without license subject to a fine of not more than $500 for each offense. An agent procuring a premium through fraudulent representations is liable to a fine of not more than $500, or imprisonment not more than one year. For violation of the rebate law a penalty of $500 is provided, and a revocation of license for three years.

ADDITIONAL NOTES FROM THE STATUTES. Discrimination.—Discrimination between insurants of the same class and equal expectation of life, as regards rates, benefits, or conditions of contract is prohibited. Penalty, a fine not exceeding $500, and revocation of license.

Miscellaneous Companies.—No provision for companies other than life, fire and surety. Surety companies organized under the laws of any of the United States can be admitted to this State upon complying with the laws relating to foreign insurance companies and their agents. The unearned premium in such companies computed as in fire insurance companies. Judges, heads of departments or other officers authorized to approve bonds may accept and approve as a surety for persons required to give bonds; policies issued by authorized companies.

Misrepresentations.-Misrepresentations or mistakes shall not void a policy unless such were intentionally or fraudulently made, or unless they materially affect the risk.

Representations Not Warranties.—Statements made in application are held to be representations only and not warranties.


ANCE, TRENTON. Preliminary Documents.—Company must file with the Insurance Commissioner a certified copy of its charter and a statement showing the condition and business of the company at the close of the preceding year. It must appoint the Insurance Commissioner its attorney to accept legal process.

Funds.-Company must possess a paid-up and well invested capital stock of at least $100,000, or net cash assets to that amount.

Valuation of Policies.—Basis of valuation of policies, the Actuaries' Table of Mortality, with interest at four per cent; for computing values of policies, one cent on each $1000.

Annual Statements.-Annual statements must be filed with the Insurance Commissioner during the month of January, showing the condition of the company December 31 preceding

Agents. Each agent must procure from the Insurance Commissioner a certificate of authority to do business. Certificates renewable annually by March ist.

Examinations.—The Commissioner of Banking and Insurance is authorized to examine any company doing business in the State, and to revoke its license if it shall be found to be impaired.

Fees.-For filing a copy of charter, $20; annual statements, $20; certificates to agents, $2; license to broker, $10. Other fees regulated by reciprocal provision.

Tases.—Taxes upon life companies of other States regulated by reciprocal provision.

Penalties.-For neglect to file statement a penalty of $100 per day is provided. For violations of other requirements a penalty of $500 is provided.

ADDITIONAL NOTES FROM THE STATUTES. Discrimination. Any distinction or discrimination in favor of individuals between insurants of the same class and equal expectation of life, as regards rates, benefits or conditions of contract, is prohibited. Penalty, a fine of $100 for every $2500 of insurance written, and the person against whom final judgment is obtained is prohibited for two years thereafter from acting as agent of any life insurance company in the State. Discrimination against colored persons, wholly or partially of African descent, is also prohibited. Penalty, a fine of $500.


Preliminary Documents.—Company must appoint in each county in which it does business an attorney to accept service of legal process. Such attorney must reside at the county seat and may be an agent of the company.

Annual Statements.- Annual statements must be filed with the Auditor and a synopsis of the same must be published in one newspaper in every county wherein the company has an agent.

Agents.—Companies must have at least one agent at the county seat of every county in which it solicits business, who is a resident of the Territory.

Examinations.—The Territorial Auditor may examine into the affairs of any company whenever he has reason to believe that it is in an unsound condition.

Fees. For examination of first application of company and issuing certificates, $25; for filing annual statements, $5; certificate to agent, $i; copies of papers on file, 10 cents per folio, and 25 cents for certifying the same. Each agent must pay a license fee of $10 in each county where he does business.

Taxes.-Agents must make a return to the Assessor of the county of premiums received and losses and expenses incurred, and a tax will be levied upon the balance the

same as upon personal property. Real estate owned by companies is also subject to taxes. Other taxes governed by reciprocal legislation.

Penalties.-Any company or person failing to comply with any of the requirements of this act, or violating any of the provisions thereof, shall be deemed guilty of a misdemeanor, and, upon conviction thereof, shall be fined in a sum not exceeding $1000, and be imprisoned in the county jail for a period of not less than thirty days nor more than six months.

Miscellaneous Companies.- Plate glass and accident companies must have $100,000 capital; all others, $300,000.


ALBANY. Preliminary Documents.-Company must file with the Superintendent a certified copy of its charter and a statement verified by the president, vice-president or other chief officer and secretary, giving the name, location, capital, assets and liabilities of the company in detail. Also a copy of its last annual statement made in conformity to the laws of the State in which it was organized. Company must obtain from the Superintendent a certificate of authority to do business.

Attorney.—The Superintendent of the Insurance Department must be appointed attorney for the company to accept service of legal process.

Funds.—Company must possess at least $100,000 of assets invested in United States bonds or in securities of the State in which it is located, or of New York State, or of any county or incorporated city of this State authorized by the legislature to issue bonds, such stocks or bonds not to be received at a rate above their par value or above the market value; or in bonds and mortgages on improved unincumbered real property in this State worth fifty per centum more than the amount loaned thereon.

Deposit.-Company must have on deposit with the proper financial officer of the State wherein it was incorporated at least $100,000, and must file a certificate with the Superintendent that such sum is held for the benefit of all its policyholders.

Companies of Other Countries.- Foreign companies must have not less than $200,000 held in trust in this country for the protection of policyholders in the United States, including a deposit with Superintendent of Insurance of $100,000.

Valuation of Policies.—The Superintendent of Insurance shall annually make valuations of all outstanding policies, additions thereto, unpaid dividends, and all other obliga. tions of every life insurance corporation doing business in this State. All valuations made by him, or by his authority, shall be made upon the net premium basis, according to the standard of valuation adopted by the company for the obligation to be valued; provided, that in every case the standard of valuation employed shall be stated in his annual report. Any company may adopt different standards for obligations of different dates or classes, but if the total value determined by any such standard for the obligations for which it has been adopted shall be less than that determined by the legal minimum standard hereinafter prescribed, or if the company adopt no standard, said legal minimum standard shall be used. The legal minimum standard for contracts issued before the first day of January, 1901, shall be the Actuaries' or Combined Experience Table of Mortality, with interest at four per centum per annum, and for contracts issued on or after said day shall be the American Experience Table of Mortality, with interest at three and one-half per centum per annum. The Superintendent may vary the standards of interest and mortality in the case of corporations from foreign countries, and in particular cases of invalid lives and other extra hazards, and value policies in groups, use approximate averages for fractions of a year and otherwise, and calculate values by net premiums or otherwise, and accept the valuation of the Department of Insurance of any other State in place of the valuation herein required, if the insurance officer of such State accepts as sufficient and valid for all purposes the certificate of valuation of the Superintendent of Insurance of this State.

Annual Statements.- Annual statements must be filed on or before March 1, showing the condition of the company on December 31 preceding. Surety companies must report to the State Comptroller on or before August 1, as of June 30, the amount of premiums collected for the year ending on that date, for the purposes of taxation.

Agents.—Each agent must procure from the Superintendent a certificate authorizing him to do business. Such certificate must be renewed annually.

Examinations.—The Superintendent is authorized to examine companies whenever he may deem it necessary, and to charge therefor the actual expenses incurred, but will accept the certificate of examination of another State.

Fees.-On admission of foreign life insurance companies of foreign countries: For filing charter, $30; filing annual statement, $20; certificates to agents, such sum not exceeding $5 as shall be fixed by the Superintendent; copies of papers on file, ten cents per folio; certifying same, $I; examinations of companies, actual expenses incurred. Domestic life insurance companies pay no fees except for certified copies of papers on file ten cents per folio and one dollar for seal and actual expenses incurred on examinations. Fees for foreign life insurance companies of other States of the United States are regulated by reciprocal provisions. The following amendment to chapter 14 of the general laws relating to taxation became a law April 29, 1901, and exempts from taxation the funds specified:

The deposits in any bank for savings which are due depositors, the accumulations in any domestic life insurance corporation, held for the exclusive benefit of the insured, other than real estate and stocks now liable for taxation; the accumulations of any incorporated co-operative loan association upon the shares of such association held by any person; and personal property of any corporation, person, company or association transacting the business of fire, casualty or surety insurance in this State, equal in value to the unearned premiums required by the laws of this State, or the regulations of its Insurance Department, to be charged as liability.

Franchise Tax on Insurance Corporations.—The following amendment to the tax law in relation to franchise taxes of insurance corporations became a law March 16, 1901 :

An annual State tax for the privilege of exercising corporate franchises or for carrying on business in their corporate or organized capacity within this State equal to one per centum on the gross amount of premiums received during the preceding calendar year for business done in this State, whether such premiums were in the form of money, notes, credits, or any other substitute for money, shall be paid annually into the Treasury of the State, on or before the first day of June by the following corporations :

1. Every domestic insurance corporation, incorporated, organized or formed under, by, or pursuant to a general or special law;

2. Every insurance corporation, incorporated, organized or formed under, by, or pursuant to the laws of any other State of the United States, and doing business in this State, except a corporation doing a fire insurance business or a marine insurance business :

3. Every insurance corporation, incorporated, organized or formed under, by, or pursuant to the laws of any State without the United States, or of any foreign country, except such a corporation doing a life,* health or casualty insurance business, and doing business in this State; but the tax on gross premiums of a corporation so incorporated, organized or formed and doing a fire or marine insurance business within the State shall be equal to five-tenths of one per centum. This section does not apply to a fraternal beneficiary society, order or association, a corporation for the insurance of domestic animals, a town or county co-operative insurance corporation, nor to any corporation subject to the supervision of or required by or in pursuance of law to report to the Superintendent of Banks ; þut this section does apply to an individual, or partnership, or association of underwriters known as Lloyds, in so far as corporations doing the same kind of insurance business are subject to its provisions. The taxes imposed by this section shall be in addition to all other fees, licenses or taxes imposed by this or any other law, except that in assessing taxes under the reciprocal provisions of section 33 of chapter 38 of the general laws, credit shall be allowed for any taxes paid under this section. Any insurance corporation taxed under this section for the year ending December 31, 1901, shall be credited by the Controller with one-half of the amount of taxes paid by it into the State Treasury, under the provisions of section 187 of the tax law, for the year ending June 30, 1901. The term. "gross premiums," as used in this article, shall include, in addition to all other premiums. such premiums as are collected from policies subsequently canceled and from reinsurance. The term, "insurance corporations," as used in this article, shall include a corporation,

* The Lewis Bill, requiring life companies of foreign countries to pay a tax of one per cent on all premiums on which a tax has not been paid to any other State, became a law in 1904.

association, joint stock company or association, person, society, aggregation or partnership by whatever name known doing an insurance business in this State.

Every insurance corporation liable to pay a tax under section 187 of this chapter shall, on or before March 1 in each year, make a written report to the Controller of its condition at the close of its business on December 31 preceding, stating the entire amount of premiums received on business done thereby in this State during the year ending with such day, whether the premiums were in money or in the form of notes, credits or other substitutes for money.

Taxes.—Marine insurance companies of foreign countries must pay to the Superintendent on or before March 1 of each year a tax of two per cent upon premiums received in the State during the preceding year. Surety companies must pay a franchise tax of one-fifth of one per cent upon gross premiums received in the State to the Comptroller. Other taxes regulated by reciprocal provisions.

Penalties.—Company failing to file annual statement as required by law subject to a penalty of $500, and $500 additional for each month it remains in default. The statute prevents a life company from making any discrimination between insurants of the same class and of the same expectation of life, either in the amount of premiums charged or in return of premium dividends or other advantages. Any person violating this provision of the law shall be deemed guilty of a misdemeanor, and on conviction thereof the Superintendent is required to revoke his certificate of authority, and is prohibited from issuing another to him for the term of three years from the date of his conviction.

ADDITIONAL NOTES FROM THE STATUTES. Application by Insured.—No policy may be issued except upon application of the person insured, but a wife may insure the life or health of her husband, an employer may insure his employees against accident for the benefit of the injured, and a parent or guardian may insure the life of a minor.

Discrimination.—Discrimination between insurants of the same class and equal ex: pectation of life as to rates, benefits or conditions of contract is prohibited.

Limitation of Employees' Contracts.—Companies are prohibited from making contracts with officers, trustees or employees for salaries extending beyond one year.

Miscellaneous Companies.- Casualty companies must make the same deposit as life companies, except where several classes of business are undertaken, when deposit must equal that which would be required were corporations formed separately for the several classes to be undertaken, not, however, to exceed the sum of $250,000. Credit and title guarantee companies required to report annually the amount of bonds and mortgages guaranteed by them.

Liability Companies.-On or before October i of every year, each company must state in writing to the Superintendent of Insurance its experience in the United States during a period of five years, commencing eight years previous to December 31 of the year in which the statement is made, in the following particulars, namely: Number of persons reported injured under all forms of liability policies; the number and amount of all claims against policyholders settled either by payment or compromise; the number or amount, separately, of all suits or actions against policyholders which have been settled either by payment or compromise. Each such company shall reserve an amount equal to the average cost of each suit or action pending, as shown by the experience so stated, and for injuries reported under such policies at any time within eighteen months the average cost for each injured person, as shown by said experience, less the average claim cost so ascertained for each claim paid or settled, and for each suit pending for injuries included in the reserve. Each company engaged in liability underwriting for less than eight years shall abide by the basis of average of the other companies, which average shall be furnished by the Superintendent of Insurance on or before December 1 of each year.

Title and Bond and Mortgage Guarantee Companies.-Every corporation organized under provisions of subdivision one of section 170 shall make and file with the Superintendent of Insurance on or before January 31 of each year a report in writing, setting forth the aggregate amount of bonds and mortgages outstanding on the 31st day of the

« PreviousContinue »