The Birmingham age-herald., 1915-10-23

copy with his admission of service.
 Sec. ,. There shall be filed with the commissioner of insurance by such at
 torney. a statement under the oath of
 such attorney showing the maximum
 amount of indemnity upon any single
 risk. and such attorney shall, when
 ever and as often as the same shall be
 required. file with the commissioner or insurance statement verified by his
 oath to the effect that he has examine cd
 the commercial rating of such subscrib-
 CTS as shown by the reference book of
 a commercial agency having at leas |
 one hundred thousand subscribers, and
 that from such examination or from
 other information in his possession if ap-
 pears that no subscriber has assumed
 on any single risk an amount greater
 than ten per cent of the net worth of
 such subscriber.
 Sec. G. There shall at all times be
 maintained as a reserve a sum in cash
 or convertible securities equal to fifty
 per cent of the aggregate net annual de
 posits collected and credited to the ac- counts of the subscribers on policies having one year or less to run and pro-
 rate on those for longer periods. For the purpose of said reserve, net annual deposits shall be construed to mean the advance payments of subscribers after deducting therefrom the amounts spe- officially provided in the subscribers |agreements. for expenses. Said sum shall at no time be less than twenty five thousand dollars. and If at any time fifty per cent Of the aggregate deposits
 so collected and credited shall not equal that amount. then the subscribers. or
 their attorneys for them. shall make up any deficiency.
 Sec. '. Such attorney shall make an annual report to the commi ssioner of in-
 surance for each calendar year. show
 ing that the financial condition of af-
 fairs at the office where such contracts are issued Is In accordance with the
 standards of solveney provided for here
 In. and shall furnish such additional in formation and reports may be re- quired to show the total premiums or deposits collected, the total losses paid, the total amounts returned to subscrih- CTS. and the amounts retained for ex- penses; provided, however. that such at torney shall not be required to furnish the names and addresses of any sub seribers. The business affairs and as- sets of said reciprocal or inter-insur- ance exchanges, shown at the of fee of the attorney thereof. shall be subject to examination by the commis- sioner of insurance
 Sec. B. Any corporation now or here after organized under the laws of this state, shall. in addition to the rights. powers and franchises specified in it's articles of incorporation, have full pow CT and authority to exchange insur- ance contracts of the kind and charac- ter herein mentioned. The right to ex- change such contracts Is thereby de- clared to be incidental to the purposes for which such corporations are or ganized and as much granted as the rights and powers expressly conferred. Sec. g. Any attorney who shall, ex- cept for the purposes of applying for certificate of authority as herein pro- vided, exchange any contracts of in- demnity of the kind and character spe- citled in this act. or directly or in directly solicit or negotiate any ap- plication for same. without first com- plying with the foregoing provisions, shall be deemed guilty of a msdemean- or, and upon conviction thereof shall be subjected to a fine of not less than
 one hundred dollars nor more than one thousand dollars.
 Sec. To- Each attorney by whom or through whom are issued any policies or contracts for indemnity of the char acter referred to in this act shall pro- cure from the commissioner of insur- ance annually certificate of authority, stating that all of the requirements of this act have been complied with, and upon such compliance and the payment
  scommisisoner of insurance shall issue such certificate of authority. The com missioner of insurance may revoke or suspend any certificate of authority issued hereunder in case of breach of any of the conditions imposed by this act after reasonable notice has been given said attorney. in writing, so that he may appear and show cause why ae- | tion should not be taken Any attorney who may have procured a certificate of lauthority hereunder may renew same annually thereafter provided, however. that any certificate of authority shall continue in full force and effect until the new certificate of authority be issued or specifically refused. Sec. II. Such attorney, in lieu of all other taxes of whatever character. in this state, shall pay to the state with the filing of each annual report, as an annual license fee, the sum of fifty one ($51.00) dollars and one per cent of the gross premiums deposits for the preceding calendar year, deducting all amounts returned to or paid to subscrib CTS or creditors to their accounts as savings.
 Sec. 12. Except as herein provided no insurance law of this state shall apply to the exchange of such indemnity con- tracts unles sthey are specifically men, toned
 Approved August 25, 1915.
 Official
 JOHN PURIFOY
 Secretary of State.