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aforesaid examination the Insurance Commissioner may, in person or through his representative or representatives, when he reasonably deems it for the best interest of the people of this State, examine any corporation, society, association, partnership or individual, which corporation, society, association, partnership or individual is engaged in or advertises as engaged in organizing or receiving subscriptions for or disposing of stock of or in any manner aiding or taking part in the promotion or business of any insurance corporation, society or association, or which is holding capital stock of one or more insurance corporations thereby controlling the management thereof as voting trustee or otherwise. The purposes for which such corporation, society, association, partnership or individual may be examined shall be to ascertain any payments to or from any of them to any insurance corporation, society or association and the value thereof and for the purpose of ascertaining the conditions, provisions and value of any contracts between them and any insurance corporation, society or association and for the purpose of ascertaining the liabilities, if any, of any insurance corporation, society or association, to any of them and for the purpose of determining whether or not any evasion or violation of the insurance laws of this State are being sought or accomplished through such corporation, society, association, partnership or individual.

In any examination herein authorized, the Insurance Commissioner and his representatives may summon and examine witnesses and administer oaths or affirmations.

The Insurance Commissioner, his representative and representatives shall have free access to and the officers and employees of any corporation, society or association examined shall produce all the books, papers, and records of such corporation, society or association examined and the persons examining shall also have free access to all relevant books, papers and records of said other corporations, societies, associations, partnerships or individuals. If any person, partnership, corporation, society or association shall fail or refuse to produce any such books, papers or records, the Insurance Commissioner or his representative may require and compel the production of such books, papers and records, by attachment through the courts if necessary.

Failure or refusal of any insurance corporation, society or association to permit proper examination or to pay the reasonable expenses of such examination, shall be sufficient cause whereby the Insurance Commissioner may cancel the certificate of authority of the offending corporation, society or association to transact business in this State. Each examination by the Insurance Commissioner or his representative or representatives shall be expeditiously made and shall be fair and impartial.

The reasonable and proper expense of any aforesaid examination shall be borne by the Insurance Company examined. The expense of any examination shall include the reasonable and proper expenses of the Insurance Commissioner and such expenses and a reasonable per diem for his representative or representatives.

Failure to Comply With Demands of Commissioner.

Section 2. Any person who shall wilfully, corruptly or falsely swear or affirm to any matter material to any examination shall be deemed guilty of perjury and upon conviction thereof, shall be imprisoned in the penitentiary for not more than fourteen years. Except when unlawfully requested so to do any person who shall wil

fully refuse or fail to attend, answer, or produce books, papers or records or any officer, director, agent or employee of the company being examined who shall refuse to give an examiner full and truthful information and answer in writing to any proper inquiry or question made in writing by the examiner in regard to the business of the insurance company examined or other corporation, society or association, or other matter being investigated, or who shall refuse or fail to appear and testify under oath before an examiner when so requested to do shall, upon conviction thereof, be deemed guilty of a misdemeanor and shall be punished by a fine not exceeding $500.00 or by imprisonment in the county jail not exceeding one month or by both such fine and imprisonment.

Any officer, director, agent, or employee of an insurance corporation, society or association, or any person who shall knowingly and wilfully make or authorize any false certificate, entry or memorandum upon any of the books, papers or records of the corporation, society or association or upon any statement filed or offered to be filed in the Insurance Department of this State, or used in the course of any examination, with the intent to deceive the Insurance Commissioner or his representative, shall, upon conviction, be deemed guilty of a misdemeanor and shall be punished by a fine not exceeding $1,000.00 or by imprisonment in the county jail not exceeding twelve months or by both such fine and imprisonment.

Publicity of Report.

Section 3. No report or statement of any examination or any part thereof relating to a domestic company shall be made public until a copy of said report has been delivered to the Company, nor until the said company has been afforded a five day period in which to answer such report and make such showing in connection therewith as it may desire..

Action of Commissioner Subject to Review.

Section 4. Any action of the Insurance Commissioner or his representative or representatives in relation to any aforesaid examination shall be subject to review by the District Court of the county in which the company maintains its principal office. The procedure for such appeal shall follow as nearly as possible that provided for appeals from a decision of the State Board of Control. Provided, however, that the time within which the notice of appeal shall be filed in the District Court to which the appeal is taken shall be fifteen (15) days.

Insolvency of Insurance Companies.

Section 5. An insurance company shall be deemed insolvent when its admitted assets be less than all of its liabilities, excluding from such liabilities the aggregate amount of the par value of the Company's outstanding capital stock, and shall be deemed impaired when its admitted assets be less than all of its liabilities, including as a liability the aggregate amount of the par value of the company's outstanding capital stock. Whenever it shall appear to the Insurance Commissioner that an insurance company be insolvent he may then or thereafter revoke or suspend its license to do business in this State and if it be a domestic company he may direct the officers thereof to require the stockholders to pay into the company, within such time as the Commissioner may designate, such an amount as will make the company solvent and not impaired and should such payment be not made as ordered the Commissioner may communicate the fact to the Attorney General whose duty it shall become to apply to the district

court of the county in which the company maintains its principal office, for an order requiring the company to show cause why its business should not cease, and if the court finds the company to be insolvent it may grant such time as it may deem advisable for the company to become solvent and not impaired and if the company does not meet the requirements set forth by the court the court may, by proper order, direct that the business of the company be reinsured, if that can be done, and the remaining effects, if any, of the company be distributed. If such reinsurance cannot be effected the court may make such reasonable and proper orders in the premises as may be equitable to all interested parties.

The court shall have power to refer the application of the Attorney General or any other proceeding before him to a referee to inquire into and report upon the facts in the premises.

Whenever it shall appear to the Insurance Commissioner that an insurance company be impaired more than 20% of its paid up capital stock he may direct the officers of the company to take the necessary steps to have the stockholders of the company make good the impairment by paying in the necessary amount so to do, or to reduce the paid up capital stock of the company to not less than $100,000.00. Should such payment or necessary reduction be not made within such reasonable time as the Insurance Commissioner may designate, he may upon ten days notice to the company suspend or revoke its license to write insurance in this State until such time as it shall have complied with his order, and he may communicate the fact to the Attorney General and thereafter the procedure shall be the same as when the Attorney General has been notified that a company is insolvent.

Section 6. Sections 5272 and 5280, Wyoming Compiled Statutes, 1920, and all laws and parts of laws in conflict with this Act are hereby repealed.

Section 7. This Act shall take effect and be in force from and after its passage.

Approved February 27, 1925.

CHAPTER 147.

Original Senate File No. 59.

INSURANCE COMPANIES.

AN ACT to amend and re-enact Sections 5237, 5266, 5267, 5277, and 5296, Wyoming Compiled Statutes, 1920, and to amend and re-enact Section 3, Chapter 142, Session Laws of Wyoming, 1921, and to repeal Section 5283, Wyoming Compiled Statutes, 1920, and pertaining to the regulation, requirements, restrictions and qualifications of Insurance Companies and their agents. Prescribing penalties; Providing the minimum amount of capital stock and surplus that a company shall have; Providing that the company must appoint Insurance Commissioner as agent for service; Specifiing the requirements for licensing companies, agents and brokers including cost of each license, and providing for the cancelation of licenses and for relicensing of companies when license has been canceled.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1. That Section 5237, Wyoming Compiled Statutes, 1920, is hereby amended and re-enacted to read as follows:

Penalty for Violation.

Section 5237. Any life insurance company, its agent or agents violating the provisions of Section 5235 or 5236 of the Wyoming Compiled Statutes of 1920 shall be guilty of a misdemeanor, and upon conviction thereof, the offender or offenders shall be sentenced to pay a fine of five hundred dollars on each and every violation, when the amount of the insurance is twenty-five thousand dollars, or less, and for every additional twenty-five thousand dollars or less there shall be an additional penalty of five hundred dollars to be recovered by action in the name of the State, and on collection it shall be paid into the county treasurer for the benefit of the common school fund in the county in which the offense was committed, and said agent or agents shall be prohibited from doing business in this State for the period of one year after the offense was committed. In cases where no suit is brought, but where proper and convincing evidence is brought to the attention of the Insurance Commissioner, of such rebate, discrimination or inducement having been allowed or offered, he shall impose the penalty mentioned above of a cancellation of the license of such agent or agents for the period of one year after the offense was committed. Section 2. That Section 5266, Wyoming Compiled Statutes, 1920, is hereby amended and re-enacted to read as follows:

Qualification for Doing Business.

Section 5266. It shall not be lawful for any insurance company, association or partnership organized or associated for any of the purposes specified in this chapter, incorporated by or organized under the laws of this State or of any other state, or the United States, or any foreign government, directly or indirectly, to take risks or transact any business of insurance in this State, unless possessed of not less than one hundred thousand dollars ($100,000.00) of actual paid up capital, exclusive of any assets of any such company as shall be deposited in any other states, or territories, or foreign countries, for the special benefit or security of the insured therein except that the requirements as to capital shall not apply to fraternal societies or mutual companies and provided that any company conducting a surety business shall possess an actual paid up capital of not less than four hundred thousand dollars ($400,000.00), and a surplus of one hundred thousand dollars ($100,000.00); and any such company desiring to transact any such business, as aforesaid, by any agent or agents in this State shall file a certified copy of its charter, or act of incorporation, together with a statement under the oath of the presiden, or vice-president, or other chief officer and the secretary of the company, for which they may act stating the name of the company and the place where located, the amount of its capital stock, if a stock company, with a detailed statement of the facts and items as required from companies organized under the laws of this State; such statement shall also show to the full satisfaction of the Insurance Commissioner that said company, if organized without the United States of America, has deposited in some one of the United States or territories a sum not less than one hundred thousand dollars ($100,000.00), for the special benefit or security of the insured therein, and shall file also a copy of the last annual report, if any, made under any law of the State, territory, or foreign country by which such company was incorporated, and no agent shall be allowed to transact business for any company whose capital is impaired by liabilities, as stated in Section 5264, Wyoming Compiled Statutes, 1920, to the extent of twenty per cent (20%) thereof while such deficiency shall continue.

Section 3. That Section 5267, Wyoming Compiled Statutes, 1920, is hereby amended and re-enacted to read as follows: Qualification of Foreign Insurance Companies.

Section 5267. Any insurance company, society or association not incorporated by or organized under the laws of this State, now doing business in this State or that may hereafter desire to transact business by any agent or agents in this State, shall file with the Insurance Commissioner a written instrument or power of attorney, duly signed and sealed appointing and authorizing said Insurance Commissioner and his successor in office to acknowledge or receive service of process issued from any court of record, justice of the peace, or other inferior court and upon whom such process may be served for and in behalf of such company, society or association, in all proceedings that may be instituted against such company, society or association, in any court of this State or in any court of the United States in this State, and consenting that service of process upon said Insurance Commissioner, shall be valid and binding, and be deemed personal service upon such company, society or association, so long as it shall have any policies or liabilities outstanding in this State, although such company, society or association may have withdrawn, been excluded from or ceased to do business in this State, and in case such process is issued by a justice of the peace or other inferior court, the same may be directed to and served in duplicate by an officer authorized to serve process in the city or county where the said Insurance Commissioner shall have his office, at least fifteen days before the return day thereof, and such service shall confer jurisdiction. Every such instrument of appointment executed by such company, society or association, shall be attested by the seal of such company, society or association, and shall be accompanied by a copy of a resolution of the board of directors or trustees or like officers of such company, society or association similarly attested, showing that the president and secretary or other chief officers of such company, society or association, are authorized to execute such instrument in behalf of the company, society or association; and if any such company, society or association shall fail or neglect or refuse to appoint and maintain, within the State an attorney or agents, in the manner hereinbefore described, it shall forfeit the right to do or to continue business in this State.

Section 4. That Section 5277, Wyoming Compiled Statutes, 1920, is hereby amended and re-enacted to read as follows:

Certificate of Authority.

Section 5277. Before transacting any fire, life, or other indemnity or insurance business, each and every agent, firm or corporation acting as agent, solicitor or representative of such corporations or associations, shall procure annually from the Insurance Commissioner a certificate of authority or license as an agent, solicitor or representative of each corporation or association represented by him or them, and which certificate shall terminate or expire on the 31st day of March of each year unless sooner revoked or terminated as otherwise provided, for which a fee of two dollars ($2.00) for each certificate shall be paid to the Insurance Commissioner. Certificates of authority or license issued under this section shall be considered the license of the company, corporation, association or society applying for the same, and shall not be transferable from the agent, firm or corporation for which the license was originally issued to another agent, firm or corporation.

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