Birmingham state herald., 1897-02-27

Secretary of State.
 #eT
 No e14. AN. ACT s. 2s5 To regulate the business of insurance in
 the state of Alabama.
 Section 1. Be it enacted by the general assembly of Alabama, That when con- sistent with the context, and not obvious ly used in a different sense, the term company" or insurance company" as used in this act, includes all corporations, associations, partnerships or individuals pals in any business of insurance; the word domestic" designates those com- panies incorporated or formed or indi- viduals living in this state: and the word foreign" when used without limitation, includes all those formed by authority of any other state or government; the terms .'unearned premiums" and "re-in- surance reserve" and liability reserve and met value of policies" or ''premi- um reserve" severally intend the lia- bility of an insurance company upon it's insurance contracts, other than accrued claims computed by rules of valua ton established by section 8; by the term of met assets" is meant the funds of an insurance company available for the payment of its obligations in Alabama.
 Sec. ?. That contract of insurance is an agreement expressed or implied by which one party, for a consideration, promises to pay money. or it's equivalent, or to do some act of value to the assured upon tho destruction or injury of some thing in which the other party has an insurable interest. .
 Sec. 3. That thesdepartment of insur- ance shall have for it's chief officer the secretary of state, who shall be styled the insurance commissioner eX otiicio. The insurance commissioner shall exercise the powers and perform the duties confer red and imposed upon him by this act, or by ary other law of the state. He may appoint a deputy commissioner to assist him in the discharge of his duties, who shall receive an annual salary to be fixed by the governor not to exceed twelve hundred $1200.00) dollars. to be paid by fees collected from insurance companies as provided in section 2S of this act, and who shall be removable at the pleasure of the insurance commits sioner. The said deputy commissioner shall give bond with a guarantee com- pany, or personal sureties, in the sum of ten thousand (S10, ,00o.00) dollars, to be approved by the insurance commission CT, for the faithful performance of his duties.
 Sec. 4. That before granting certificates of authority to an insurance company to issue polici5s or make contracts of in SuTdDce, the lflSuIdIce cOln1HlSSlOHet shall be satisfied, by such examinations and evidence as he sees fit to make and require, that such company is duly quail flied, under the laws Of th- state, to transact business therein. As often as once in two years the insurance commits sioner shall personally or by his deputy or some competent person appointed by him for that purpose, visit each domestic insurance company and examine its af- fairs, especially as to its financial condi- tion and ability to fulfill its obligations, and whether it has compiled with the law. He shall also make an examina- ton of any such company whenever he deems it prudent to do so or upon the re- quest of five or more of the stockholders or persons pecuniari1y interested thersin, who shall make affidavit of their bslief, with specifications of their reasons there for, that such company is in unsound condition. Whenever he deems 1t pru- dent for the protection of policy holders in this state that any company author ized to do business in this Stat= has vio- lated any of the provisions of this act, he shall, in like manner, visit and exam inc, or cause to be visited and examined by some competent person or persons he may appoint for that purposa, any for eign insurance company applying for ad- mission or already admitted to do busi- ness by agencies in this state. For the purposes aforesaid, the commissioner or his deputy or person making the exam ination, shall have free access to all the books and papers of an insurance com pany that relate to its business, and to the books and papers kept by any of its agents, and may summon and qualify as witnesses under oath and examine the directors, officers, agents, and trustees of any such company, and any other p=r- sons, in relation to it's affairs, transac- tions, and condition. Any insurance company examined under the provisions of this act, shall pay the proper charges incurred in such examination, including the expenses of the insurance commits sioner or his deputy, and the expenses and compensation of his assistants em- ployed therein. Whoever, without jus tifiable cause, nsglects upon due sum mons to appear and testify before the in surance commissioner or his deputy or any person appointed by him as pro- vided in this section, and whoever ob- Structs the insurance commissioner, his deputy or examiner, in his examination of insurance companies, shall be guilty of a msdemeanor, and punished by fine of not less than one hundred C1000O dol lars nor more than five hundred ($500.0W dollars. Any insurance company violat- ing any provision of this section or refus- ing to submit to the aforesaid examina- tion when requested, shall forfeit their right to do business in this state for the next twelve Q2) months thereafter, and the insurance commissioner snail lmnle- diately revoke the license, if already is susd. to said insurance company, to do business in this state. Provided that in case of foreign life insurance companies, for the purposes of this act, the sirsur- ar1ce commissioner shall accept as true and correct the sworn publishea state ment made to and approved by the insur- ance commissioner, or like officer, of the state in which said company is incorpor- ated.
 Sec. 5 That if the insurance commis- sioner is of the opinion, upon examination or other evidence, that foreign insur- ance company is In an unsound condi- ton, that its actual funds, exclusive of it's capital, are less than it's liabilities, or if it has failed to comply with the law, or if it's officers or agents refuse to sub init to examination, or to perform7any le- gal obligation in relation thereto, or fail to pay any judgment against it by a citi- zen of this state, he shall revoke or sus- pend all certificates of authority granted to it or it's agents and shall cause notif- cation thereof to be published in one or more newspapers of general circulation, and mo new business shall thereafter be done by it or its agents in this state while such default or disability continues, nor until its authority to do business is re- stored by the insurance commissioner; 1af.N hH In nnFn h l.