Bond.

§ 593. The commissioner must execute an official bond in the sum of twenty thousand dollars.

Enacted March 8, 1907; stats. 1907, p. 141.

Insurance classified.

§ 594. All insurance business in the State of California is hereby classified in the fourteen kinds as follows:

First--Life insurance business, including endowments and -annuities, but not including health or accident or sickness insurance or any casualty insurance as hereinafter provided.

Second-Fire insurance, but not including any marine insurance, nor any inland navigation insurance, nor any casualty insurance as hereinafter provided.

Third-Marine insurance, including ocean and inland risks, transportation and automobiles, but not including any other casualty insurance as hereinafter provided.

Fourth-Title insurance, including insuring owners of real or personal property, or others interested therein, against loss by encumbrance, or defective titles, or adverse claim to title, either together with or without examination of title, or furnishing information relative thereto.

Fifth-Fidelity and surety insurance, including the guaranteeing of persons holding places of public or private trust and guaranteeing the performance of contracts other than insurance policies and guaranteeing and executing all bonds, undertakings and contracts of suretyship.

Sixth-Accident insurance, and either sickness or health insurance, including insurance against injury, disablement or death resulting from traveling or general accident, and against disablement resulting from sickness, and every insurance appertaining thereto.

Seventh-Plate glass insurance, including all insurance against breakage of glass, whether local or in transit.

Eighth-Liability insurance, including all insurance against loss or damage resulting from accident to or injury, fatal or non-fatal, suffered by an employee or other person for and which the insured is liable.

Ninth-Boiler and machinery insurance, including insurance upon steam boiler, and upon pipes, engines, and machinery connected therewith and operated thereby, against explosion and accident, and against loss or damage to life, person or property, resulting therefrom.

Tenth-Burglary insurance, including insurance against loss by burglary, house breaking or theft.

Eleventh Credit insurance, including insurance or guarantee either by agreement to purchase uncollectible debts or otherwise, to insure against loss or damage from the failure of persons indebted or to become indebted to the insured or to meet existing or contemplated liabilities.

Twelfth-Sprinkler insurance, including insurance against loss or damage by water to any goods or premises arising from the breakage or leakage of sprinklers or water pipes.

Thirteenth-Team and vehicle insurance including insurance against loss or legal liability for loss because of damage to property caused by the use of teams or vehicles whether by accident or collision or by explosion of any engine or tank or boiler or pipe or tire of any vehicle and also including insurance against theft of the whole or any part of any vehicle; the term vehicle as here used includes elevators and automobiles and bicycles but does not include ships nor vessels nor boats nor any railroad rolling stock.

Fourteenth-Miscellaneous insurance, including any and all casualty insurance not included under any of the foregoing thirteen kinds, and which is a proper subject of insurance.

No company having a capital stock shall do in California any of said first kind of insurance without having a capital stock of at least $200,000.00 nor shall any such company do in California any other of said kinds of insurance except the sixth and eighth; provided, that any such insurance company desiring to do the kind of insurance embraced within either the sixth or eighth kind must have in addition to such $200,000.00 of capital stock, at least $50,000.00 of capital stock and do the kind of insurance embraced within both the sixth and eighth kinds at least the sum of $100,000.00 capital stock in addition to the said $200,000.00 of capital stock required to do the first kind of insurance.

No company having a capital stock shall do in California any of said second kind of insurance without having a capital stock of at least $200,000.00 nor shall such company do in California any other of such kinds of insurance except the third and thirteenth nor do the third without having in addition to such $200,000.00 capital stock at least $200,000.00 capital stock for such third kind of insurance, nor do any of the thirteenth without having in addition to such $200,000.00 capital stock for the second, nor do any of the thirteenth other than automobile

insurance without having in addition to such $400,000.00 capital stock for the second and third at least $50,000.00 capital stock for such thirteenth kind of insurance.

No company having a capital stock shall do in California any of said third kind of insurance without having a capital stock of at least $200,000.00 nor shall any such company do in California any other of said kinds of insurance except the second and thirteenth nor do the second without having in addition to such $200,000.00 capital stock at least $200,000.00 capital stock for such second kind of insurance nor do any of the thirteenth other than automobile insurance without having in addition to such $200,000.00 capital stock for the third or in addition to such $400,000.00 capital stock for the second and third at least $50,000.00 capital stock for such thirteenth kind of insurance.

No company having a capital stock shall do in California any of the fourth or fifth or sixth or seventh or eighth or ninth or tenth or eleventh or twelfth or thirteenth or fourteenth of said kinds of insurance without having a capital stock of at least $100,000.00 nor shall any such company do in California any other of said fourth or fifth or sixth or seventh or eighth or ninth or tenth or eleventh or twelfth or thirteenth or fourteenth kinds of insurance without having in addition to such $100,000.00 capital stock at least $50,000.00 capital stock for each additional kind of insurance. No company having a capital stock of at least $200,000.00, and authorized to do in California the thirteenth kind of insurance shall therein do the first or second or third kind of insurance, and must in addition to such capital stock of at least $200,000.00, have $50,000.00 of capital stock for each kind of insurance it may do therein other than the said thirteenth kind.

Such capital stock required must be fully paid up before the doing of any such business in the State of California except that companies incorporated under the laws of California must have at least twenty-five per cent of their capital stock paid in previous to the issuance of any policies and the residue within twelve months of the filing of the certificate of incorporation.

The capital stock required must be exclusive of all liabilities for losses reported, expenses, taxes and re-insurance of all outstanding risks, as provided in sections 602 and 602a of the Political Code.

Every company organized or formed under the laws of any other state or country as a mutual or as a joint stock and mutual company having a capital stock of not less than $100,000.00

must have in lieu of such capital stock available cash assets of at least $200,000.00 above all liabilities for losses reported, expenses, taxes, and re-insurance of all outstanding risks as provided in sections 602 and 602a of the Political Code.

Amended April 15, 1909; stats. 1909, p. 928; in effect in sixty days.

ED. NOTE. § 594. Section 2 of the act amending this section reads as follows:

SEC. 2. The provisions of this act shall not apply to life or fire insurance associations operating on the assessment plan or on the fraternal plan.

Foreign companies, deposit of securities.

§ 594a. No insurance company organized or existing under the laws of any country outside of the United States shall transact any business of insurance in the State of California without first making deposit, and thereafter continuously maintaining such deposit except as hereinafter otherwise specially provided, so long as any such business transacted in this state remains in existence for any purpose whatever, either unmatured or matured but unsettled, and whether in controversy or not. Such deposit must be of securities which the law of California permits for the investment of the assets of such California insurance companies. Such deposits may be with the insurance commissioner or superintendent of insurance, or with the auditor, comptroller or general fiscal officer of any state in the United States in which said foreign company is authorized to do such insurance business, or a like amount held in trust for the purposes herein specified as provided for by the laws of that state. The amount of the deposit must be equal to the minimum amount of the capital stock or available cash assets required by the preceding section and must be maintained exclusive of all liabilities for losses reported, expenses, taxes and reinsurance of all outstanding risks, as provided in sections 602 and 602a of the Political Code. Such deposits, for all purposes of the insurance laws of this state may be treated as a part of the capital of the company making it.

If such deposit is not so maintained in the State of California, its existence in some other state of the United States shall be certified at least annually to the insurance commissioner of the State of California by the superintendent of insurance or commissioner of insurance or auditor, or comptroller, or general

fiscal officer of the state in the United States wherein such deposit is so maintained, and also so certified oftener and whenever from time to time required by the insurance commissioner of the State of California, and such certificate shall show in detail of what such deposit consists.

None of such securities so deposited shall be estimated above the par value of the same nor above the market value. Such deposits must be for the benefit and security of all the policy holders of the company in the United States. Such securities so deposited with the insurance commissioner of the State of California shall be by him specially deposited in the state treasury in packages marked with the name of the company from whom received, and so long as the company continues solvent it shall be permitted to collect the interest or dividends on the securities so deposited, and from time to time to withdraw such securities on depositing other securities in the stead of those to be withdrawn, such new securities to be of the character and value specified in this section, but none of such securities shall be withdrawn from the state treasury except upon the written order of the company making the deposit, which order must be indorsed by the insurance commissioner of the State of California or else such withdrawal must be had under the authority of some court of competent jurisdiction, which must be obtained if the insurance commissioner for any reason refuses to so indorse said order. Whenever such deposit has been made with the insurance commissioner of the State of California as provided in this section, said commissioner must issue to the company so depositing, a certificate under his official seal stating the items and amount of securities so deposited, and their value, to the best of his knowledge, information and belief, and in case of withdrawal and substitution, he shall issue suitable supplemental similar certificate. None of the provisions of this section shall affect the present statutes of California, either as to registered policies, or under what is known as the retaliatory law, or otherwise, either as to papers, bonds, or other securities.

Amended April 15, 1909; stats. 1909, p. 910; in effect in sixty days.

General duties of commissioner-Companies may surrender certificate; manner of.

§ 595. The insurance commissioner must receive all bonds and securities of persons engaged in the transaction of insur