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ance business in this state, and file and safely keep the same in his office, or deposit them as provided by law. He must examine and inspect the financial condition of every company engaged, or which desires to engage in the business of insurance and issue a certificate of authority to transact insurance business in this state to any company in a solvent condition which has fully complied with the laws of this state. He must determine the sufficiency and validity of all bonds and other securities required to be given by persons engaged, or to be engaged, in insurance business, and cause the same to be renewed in case of the insufficiency or invalidity thereof; and perform all other duties imposed upon him by the laws regulating the business of insurance in this state, and enforce the execution of such laws. He must make, on or before the first day of August in each year, a report to the governor of the state, containing a tabular statement and synopsis of the reports which have been filed in his office, showing, generally, the condition of the insurance business and interests in this state, and other matters concerning insurance, and a detailed verified statement of the moneys and fees of office received by him, and for what purpose, and the printing of said report and all other printing required by the insurance department shall be exempt from the provisions of article XII, chapter III, title I, part III of the Political Code. Any insurance company may pay the fees and costs therefor and may surrender to the insurance commissioner its certificate of authority previously granted, and apply to withdraw from this state, such application to be in the form of a written instrument, duly executed, and accompanied with evidence of due authority for such execution, and such written instrument to be properly acknowledged. The commissioner, at the expense of the company, paid by it in advance, must make due publication of such application for withdrawal, daily, for the period of one week, in each of two daily newspapers of general circulation, the one published in the city of San Francisco, and the other in the city of Sacramento. The commissioner must make such examination of the books of such company as may be necessary to ascertain that such company has no liabilities outstanding and not paid to residents of this state and no uncanceled policies in favor of residents of this state and if he finds that such company has no outstanding liabilities to residents of this

state and no uncanceled policies in favor of the residents of this state, he shall cancel such certificate of authority. All such examinations must be at the expense of the company, and such expense must be paid in advance.

Enacted March 8, 1907; stats. 1907, p. 145.

VII Cal. App. Dec. 2, 3.

of licensee-Examination

of

Certificate to do business-Licenses to procure insurance in companies not authorized to do business-Affidavit requiredAccount of business-Bond policies issued by licensee. § 596. No company shall transact any insurance business in this state without first complying with all the provisions of the laws of this state and thereafter procuring from the insurance commissioner a certificate of authority and continuing to comply with the laws of this state; provided, that insurance in companies not authorized to transact business in this state may be placed upon the terms and conditions in this section hereafter set forth. Such certificate of authority shall expire on the first day of July after it is issued unless sooner revoked, and must be renewed annually. No certificate of authority shall be granted or renewed to any company in arrears to the state, or to any county or city of the state, for fees, licenses, taxes, assessments, fines or penalties accrued upon business previously transacted in the state nor while the company is otherwise in default for failure to comply with any of the laws of this state regarding the government and control by the state, of such company, and all such authorizations and certificates of authority heretofore granted shall expire on July 1st, 1907.

The insurance commissioner may issue a license to any citizen of this state, subject to revocation at any time, permitting the person named therein to procure policies of insurance on risks located in this state for companies not authorized to transact business in this state, and for such license the insurance commissioner shall collect a fee of fifty dollars for each such license and renewal thereof and each such license and renewal shall expire on the first day of July unless sooner revoked. Before the person named in such license shall procure any insurance in such company he shall in every case execute and file with the insurance commissioner an affidavit that he is unable to procure, for a specified person, firm or corporation, in a majority of the companies authorized to do business

in this state the amount of insurance necessary. Every person so licensed shall keep a separate account of the business done under said license, open at all times to the inspection of the insurance commissioner, and shall file a certified copy thereof forthwith with the insurance commissioner, showing the exact amount and character of such insurance placed for any person, firm, or corporation, the gross premiums charged thereon, the companies in which the same is placed, the dates of the policies and the terms thereof, the location of the insured property and also a report in the same detail of all such policies canceled and the gross return thereon. Before receiving such license the person licensed shall execute and deliyer to the insurance commissioner a bond to the people of the State of California in the penal sum of twenty thousand dollars, with such sureties as the commissioner shall approve, conditioned that the licensee will faithfully comply with all the requirements of this section, and will file with the insurance commissioner on or before the first day of March of each year, a sworn statement of the gross premiums charged for insurance procured or placed, and the gross return premiums on such insurance canceled under such license during the year ending on the thirty-first day of December last preceding, and will pay to the insurance commissioner of the State of California, for the use and benefit of said state, an amount equal to four per cent of such gross premiums less such return premiums so reported, and in default of the payment of any sum imposed by this section, the said insurance commissioner may sue for same in any court of record in this state. Any person, firm, company or corporation for whom such insurance as herein specified shall have been effected, whenever required by the insurance commissioner so to do, shall produce for examination by him the policy or policies issued for such insurance, and disclose to him the true amount of the gross premiums agreed to be paid therefor, and upon refusal so to do shall forfeit to the State of California for each such refusal the sum of two hundred dollars, to be recovered in a civil action. All policies and insurance contracts issued without full compliance, by all parties concerned, with the laws of this state are null and void.

Enacted March 8, 1907; stats. 1907, p. 146.

VII Cal. App. Dec. 3.

See, also, Pen. C. § 439.

Attorney general to examine documents.

§ 596a. Before the insurance commissioner issues any certificate of authority or any other certificate or gives any permission or authority of any kind, based upon any written instrument or document or certified copy thereof, required by the statutes of the State of California, the commissioner shall submit such instrument, document or certified copy to the attorney general of the State of California, who shall examine the same and return it to the commissioner with his certificate or opinion as to whether such instrument, document or certified copy is in accordance with the requirements of law, and such certificate or opinion of the attorney general shall govern and control the commissioner, subject only to review by a court of competent jurisdiction; provided, that neither the authority to nor bond of an agent or solicitor, nor the annual statements as to the condition and affairs need, but may, be so submitted (with the same effect) by the commissioner to the attorney general.

Enacted March 8, 1907; stats. 1907, p. 147.

Examination of companies alleged to be insolvent-Inspection of books.

§ 597. The commissioner, whenever he deems necessary, or whenever he is requested by verified petition, signed by twentyfive persons interested, either as stockholders, policyholders, or creditors of any company engaged in insurance business in this state, showing that such company is insolvent under the laws of this state, must make an examination of the business and affairs relating to the insurance business of such company, and must make such an examination whenever any company is organized to do insurance business in this state, and before issuing a certificate of authority other than renewals to such company, and may make such examination whenever any company not organized under the laws of this state applies for a certificate to do insurance business in this state, and before issuing a certificate of authority to such company; and for such purposes shall have free access to all the books and papers of such company, and must thoroughly inspect and examine all its affairs, and ascertain its condition and ability to fulfill its engagements, and that it has complied with all the provisions of law applicable to its insurance transactions. Such company must open its books and papers for the inspection of the commissioner, and otherwise facilitate such examination; and the commissioner may

administer oaths and examine under oath any person relative to the business of such company; and if he finds the books to have been carelessly or improperly kept or posted he must employ sworn experts to re-write, post and balance the same at the expense of such company. Such examination must be conducted in the county where such company has its principal office, and must be private, unless the commissioner deems it necessary to publish the result of such investigation, in which case he may publish the same in two of the public newspapers of this state, one of which must be published in the city of San Francisco. Whenever the commissioner shall deem such examination necessary, the same must be at the expense of the company, such expense to be paid in advance, and if any such company refuses to pay such expenses in advance the insurance commissioner may refuse to issue any such certificate of authority and must revoke any existing certificate of authority authorizing such company to do business.

Enacted March 8, 1907; stats. 1907,

p. 147.

Policyholders may secure information about policies-Company must make statement-Lost policy, stay of rights.

§ 598. Any person interested in, as owner, assignee, pledgee or payee, of any policy of insurance and desiring any information about such policy, may file with the insurance commissioner an affidavit showing that he is entitled to the benefits of the provisions of this section and apply to the insurance commissioner for his certificate of the facts or information desired. If the records of his office show the facts or information desired, the insurance commissioner shall prepare his certificate reciting such facts or information. If his records do not show the facts or information desired the insurance commissioner may deliver an order to the agent of the company, designated under section six hundred and sixteen of the Political Code, directing such company to state such information or facts in an affidavit and deliver such affidavit to him. In such affidavit the company must make a full, true and correct statement of all the said facts and information in the possession of said company, whether such information be contained in the books, records, or papers in this state or in any other state or country. If such company neglects or refuses to make and deliver such affidavit to the insurance commissioner within ninety (90) days from the date of the delivery of the said order by the commissioner to the said agent as herein provided, the commissioner must revoke the cer

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