Birmingham state herald., 1897-02-27

the insurance commissioner that the capi- tai of a domestic insurance company is impaired to the extent of twenty per cent. or more, he shall notify the compa- ny that it's capital is legally subbject to be made goodsand if such company shall not withinssixty days after such notice satisfy him that 1t has repaired it's capi- tai, as provided by law he shall insti- tute proceedings against it, in accordance with the preceding section.
 Sec. '. That when the assets of a domes- tic life insurance company exclusive of it's capital are not of net cash value equal to its liabilities including the net value of it's policies, or when a. domestic life in- surance company shall show an impair ment of twenty t20) pei cent. of it's capi- tai. computed by the rules of valuation established by section 8, he shall notify such company and its agents to issue no new policies until its assets become equal to its liabilities.
 Sec. 8. That the insurance commission CT shall each year compute the net value on the 31st day of December of the pre- ceding year, of all outstanding policies of life insurance In companies authorized to make insurance on lives in this state, upon the basis of the Combined Experi- ence" or "Actuariesi Table or the American Experience Table" rate of mortality, with the interest at four per cent. per annum: and the aggregate net value, so ascertained, of the policies of any such company, shall be deemed it's liability on account of its policy obliga- tions other than accrued claims, to pro- vide for which it shall hold assets of an amount equal to such net value above all other liabilities, whenever foreign life insurance company shall present 10 the insurance commissioner a certificate from the insurance commissioner or an- other state, as to the value of its poli- cies in force, the insurance commissioner of this state shall be allowed to accept such valuation in lieu Of his own valua- tion; Provided, that the valuation shall be made according to the standard fixed in this section. To determine the liability upon its contracts of insurance of an in- surance company other than life, the in- surance commissioner shall require such companies to charge as the liability Tor reinsurance of outstanding policies fifty per cent of the premiums received on policies or risks having not more than one year to run, and pro rata of all premiums received on policies or risks having more than one year to run and in the case of companies doing a liability insurance an additional reserve fund shall be charged and known as Liability Reserve" to an amount of not less than $300.00 for each suit pending against such companys policy holders for which 1t may be liable in the lower court and $700.00 additional when such suit is ap- pealed by the defendant to d higher court. The insurance commissioner shall allow to the credit of an insurance company, in the account of it's financial condition, on such assets as are or can be made available for the payment of losses in Alabama. He shall not allow stockhold- er's obligation of any description as part of the assets or capital of any insurance company unless the same are secured by collateral satisfactory to the insurance commissioner.
 Sec. 9. That no foreign insurance com- -I--. l.. h SNt~fno 6 to do business in this state until--
 First. It shall file or deposit with the insurance commissioner a properly cer- tifed copy of it's charter, or deed of set clement and a statement of it's financial condition and business on the thirty first (31sD day of December next preceding in such form as has been determined upon al the last convention of insurance com- missionerS of the United States immedi- ately preceding the year in winch such statement is filed, with such additional information as the insurance commis- sioner may require for the protection of Alabama policy holders.
 -bdd i,ofTflH ETA OIN UNP- NUPNUP
 (A) All companies must state the total amount of gross premiums received, designating tha amount received in this state and shall at the same time pay to the insurance commissioner the sum of one C$1.0O dollar upon each one hun dred ($100.0O dollars of said gross prem- iums so received in this state and the com pany neglscting to make such returns ac- cura tetly and in full at the time of filing the annual statement, shall pay to the state, in addition to said taxes, the sum of five hundred ($5000O dollars within sixty days from date of notice of such de- linquency and shall be debarred from transacting any business of insurance in this state until said taxes and penalties are fully paid. -.i-.- s.-
 (B). It's statement shall be subscribed under oath by the president and secre- tary, or other chief officers or managers, and shall be renewed annually on or be- fore the first day of March of each year, (but the insurance commissioner may for good cause extend the time) or as soon thereafter as the insurance commissioner may require, and shall contain a full re- port of it's condition as prescribed in this section. on the thirty first day of Decem- Der preceding, which statement shall be published by it at it's own expense in daily newspaper of g5n ral cireula ton in this state. Upon failure of any com pany to comply with this section of this act promptly, fully and correctly such company will forfeit it's right to do busi- ness in this state for one year thereafter, and shall pay to the state the sum of two hundred and fifty ($25O.0O) dollars and shall forever thereafter be debarred from doing business in this state until such penalty is fully paid. M .s>-.
 co. The annual statems rt of com pany of a foreign country shall only be required to embrace it's business and conditions in the United States
 (D). Any company willfully making a false annual or other statem4nt required of it by law, and persons making oath to and subscribing the same, shall severally be punished by a fine of not less than five hundred t$500.00) dollars, nor ex- cesding one thousand ($1. .Q00.0W dollars, and any person making oath to such false statement shall be deemed guilty of the crime of perjury. and punishable for such under the criminal laws of this state.
 Second. It shall satisfy the insurance commissioner that if is fully and gally organized under the laws of its state or government to- do the business it pro- poses to transact. that if life insur- ance company. it has on deposit with the treasurer of the state, or with the proper officer of some other state, securi- ties to the actual cash value of at least one hundred thousand ($100,00O) dollars, consisting of bonds of this state. the United States. or the state in which such company is organized, or notes or bonds secured by mortgages on real estat= for double the amount; and such companies shall file with the insurance commis- sioner the certificate of the official with