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authority and powers as they may designate by ordinances not in conHict with the said general laws, as aforesaid, of this State.
SEC. 7. Said commissioners shall hold a regular meeting once a month for one day, and shall receive for their services five dollars per day for each regular meeting, and the mayor or the two commissioners may call a special meeting whenever they deem it necessary, but shall not be entitled to pay for any special meeting so called.
SEC. 8. This Act shall not repeal any laws under which such villages, towns or cities may now operate, but is intended to be cumulative.
Sec. 9. The near approach of the close of the Session and the crowded condition of the calendar, and there being so many villages, towns and cities that are not under the commission form of government and the great reduction in expenses that can be saved to the said villages, towns and cities and the betterment of the administration of municipal government under the commission form of government, create an emergency and an imperative public necessity that the rule requiring bills to be read on three several days be suspended and be in force from and after its passage,
and it is so enacted. Approved March 25, 1909. Takes effect ninety days after adjournment.
SCHOOL LANDS_VALIDATING PATENT TO SECTION IN EL PASO COUNTY AND GRANTING SAME TO
S. B. No. 252.]
CHAPTER 107. An Act to grant unto the United States of America a section of land in El Paso
county, Texas, and to validate the patent heretofore issued thereon, and declaring an emergency.
Whereas school Section 20, Block 81, Township 2, Certificate 7024, T. & P. Ry. Co., in El Paso county, was purchased in 1888 upon condition of three years residence and before the expiration of said three years residence the purchaser transferred said land to the United States of America, and under the direction of the Governor a patent, number 636, volume 10, was issued to the United States of America after said land had been fully paid for; and,
Whereas the patentee has erected upon the land and is now maintaining thereon a United States army post, known as Fort Bliss; and,
Whereas the Attorney Generals department rendered an opinion to the General Land Office, in the year 1901, to the effect that the United States of America's title was not good; therefore, Be it enacted by the Legislature of the State of Texas:
SECTION 1. The State of Texas hereby grants, releases, quit claims and cedes unto the United States of America, all of its right, title and interest in and to the section or tract of land in El Paso county, Texas, upon which now is the United States Army Post known as Fort Bliss, and which land is described as Section 20, Block 81, Township 2, Certificate number 7024, issued to the Texas and Pacific Railway Company
and appropriated to the public free school fund, and the patent issued on said land on August 13th, 1890, to wit: School Land Patent number 636, Volume 10, is hereby validated and in all things confirmed unto the grantee therein. The title herein. granted is such only as the State has by virtue of its control and inanagement of the public free school lands as conferred upon it by the ('onstitution and laws of this State.
SEC, 2. The fact that the title to the land herein described has failed creates an emergency and an imperative public necessity exists that the rule requiring bills to be read on three several days be suspended; and it is so enacted.
Approved March 22, 1909.
INSURANCE-AL'THORIZING INCORPORATION OF LIFE, ACCIDENT AND HEALTH INSURANCE
COMPANIES. S. B. No. 291.]
CHAPTER 108. An Act to authorize the incorporation of life, accident and health insurance com
panies and defining same; and to authorize such companies to transact business in the State of Texas; to authorize other like companies incorporated under the laws of other States, Territories and countries to transact business in this [State); to regulate the business of such companies; to define the duties and powers of the Commissioner of Insurance and Banking and give to him authority to issue, suspend and revoke permits to such companies to transact business in this State and to apply for the appointment of a receiver for such companies whey they become impaired; defining the method of arriving at the value of personal property of such companies for purpose of State, county and municipal taxation, and exempting such companies from an occupation or gross receipts tax; to fix the situs of personal property of such companies for purpose of taxation; to permit the deposit of securities in the office of the State Treasurer; fixing venue of suits and providing the method and manner of service of process; providing penalties for violation of the provisions of this Act; repealing all
laws in conflict herewith; and declaring an emergency. Be it enacted by the Legislature of the State of Texas:
SECTION 1. A life insurance company shall be deemed to be a corporation doing business under any charter involving the payment of money or other thing of value, conditioned on the continuance or cessation of human life, or involving an insurance, guaranty, contract or pledge for the payment of endowments or annuities. An accident insurance company shall be deemed to be a corporation doing business under any charter involving the payment of money or other thing of value, conditioned upon the injury, disablement or death of persons resulting from traveling or general accidents by land or water. A health insurance company shall be deemed to be a corporation doing business under any charter involving the payment of any amount of money or other thing of value, conditioned upon loss by reason of disability due to siekness or ill health. When consistent with the context and not obviously used in a different sense, the term “company" or "insurance company,' as used herein, includes all corporations engaged as principals in the business of life, acciilent or health insurance. The term "home" or domestic company, as used herein designates those life, accident, or life and accident, health and accident, or life, health and accident insurance companies incorporaied and formed in this State. The term "foreign company" means any life, accident or health insurance company organized under the laws of any other State or Territory of the United States or foreign country. The term “home office” of a company means its principal office within the State or country in which it is incorporated and formed. The "insurcu" or "policy" holder is the person on whose life a policy of insurance is effected. The “beneficiary” is the person to whom a policy of insurance effected is payable. By the term “net assets” is meant the funds of the company available for the payment of its obligations in this State, including uncollected premiums not more than three months past due and deferred premiums on policies actually in force, after deducting from such funds all unpaid losses and claims and claims for losses, and all other debts, exclusive of capital stock. The "profits” of a company are that portion of its funds not required for the payment of losses and expenses, nor set apart for any other purpose required by law.
SEC. 2. Any three or more citizens of this State who shall be known as corporators may associate themselves for the purpose of forming a life insurance company, or accident insurance company, or life [and] accident, health and accident, or life, health and accident insurance company; provided, that no such company shall transact more than one of the foregoing clauses [classes] of business, except in separate and distinct departments. In order to form such a company, the corporators shall sign and acknowledge its articles of incorporation before any officer authorized to take acknowledgements to deeds and file the same in the office of the Commissioner of Insurance and Banking. Such articles of incorporation shall specify:
(a) The name and place of residence of each of the incorporators.
(b) The name of the proposed company, which shall contain the words "Insurance Company” as a part thereof, and which must not so closely resemble the name of any existing company transacting insurance business in this State as to mislead the public.
(c) The location of its home office.
(d) The kind or kinds of insurance business it purposes to transact.
(e) The amount of its capital stock, not less than $100,000, all of which capital stock must be subscribed and fully paid up and in the hands of the corporators before said articles of incorporation are filed, such capital stock to be divided into shares of $100.00 each.
(f) The period of time it is to exist, which shall not exceed five hun
(g) The number of shares of such capital stock.
(h) Such other provisions not inconsistent with the law as the corporators may deem proper to insert therein.
SEC. 3. When such articles of incorporation are filed with the Commissioner of Insurance and Banking, together with an affidavit made by two or more of its incorporators that all the stock has been subscribed in good faith and fully paid for, together with a charter fee of $20.00 it shall be the duty of the commissioner to submit such articles of incorporation to the Attorney General for examination, and if he approves the same as conforming with the law he shall so certify and deliver such articles of incorporaton, together with his certificate of approval attached thereto, to the Commissioner of Insurance and Banking who shall, upon receipt thereof, record the same in a book kept for that purpose and upon receipt of a fee of $1.00 he shall furnish a certified copy of the same to the corporators, upon which they shall be a body politic and corporate, and may proceed to complete the organization of the company for which purpose they shall forth with call a meeting of the stockholders who shall adopt by-laws for the government of the company, and elect a board of directors not less than five composed of stockholders, which board shall have full control and management of the affairs of the corporation, subject to t’ie by-laws thereof as adopted or amended from time to time by the stockholders or directors, and to the laws of this State. The board of directors so elected shall serve until the second Tuesday in March thereafter on which date annually thereafter, there shall be held an annual meeting of the stockholders at the home office, and a board of directors elected for the ensuing year. At all meetings of the stockholders, each stockholder shall be entitled to one vote for each share of stock fully paid up appearing in his name on the books of the company, which vote may be given in person or by written proxy. The majority of the paid up capital stock at any meeting of the stockholders shall constitute a quorum. At any regular meeting or called meeting of the stockholders, they may by resolution provide for any lawful amendment to the charter or articles of incorporation and such amendment, accompanied by a copy of such resolution duly certified by the president and secretary of the company shall be filed and recorded in the same manner as the original charter, and shall thereupon become effective. Stockholders representing a majority of the capital stock of any such company may in such manner also increase or reduce the amount of its capital stock; provided, that the capital stock shall in no case be reduced to less than $100,000 fully paid up. A statement of any such increase or reduction shall be signed and acknowledged by two officers of the company and filed and recorded along with the certified copy of the resolution of the stockholders provided therefor in the same
as the charter or amendment thereto. For any such increase or reduction the company may require the return of the original certificates as other evidences of stocks in exchange for new certificates issued in lieu thereof. The shares of stock of such company shall be transferable on its books in accordance with law and the by-laws of the company by the owner in person or his authorized agent, and every person becoming a stock-holder by such transfer shall succeed to all rights of the former holder of the stock transferred, by reason uf such ownership.
SEC. 4. When the first meeting of the stockholders shall be held and the officers of the company elected it shall be the duty of the president or secretary so [to] notify the Commissioner of Insurance and Banking, and he shall thereupon immediately make or cause to be made at the ex
pense of the company a full and thorough examination thereof, and if he shall find that all of the capital stock of the company, amounting to not less than $100,000, has been fully paid up and is in the custody of the otficers, either in cash or securities of the class in which such companies are authorized by this Act to invest or loan their funds he shall issue to such company a certificate of authority to transact such kind or kinds of insurance business within this State as such officers may apply for and as may be authorized by its charter, which certificate shall expire on the last day of February next after the date of its issuance. Before such certificate is issued not less than two officers of such company shall execute and file with the Commissioner of Insurance and Banking a sworn schedule of all the assets of the company exhibited to him upon such examination, showing the value thereof, together with a sworn statement that the same are bona fide, the unconditional and unencumbered property of the company and are worth the amounts stated in such schedule. No original or first certificate of authority shall be granted except in conformity herewith, regardless of the date of filing of the articles of incorporation with the Commissioner of Insurance and Banking.
SEC. 5. Each life insurance company, or accident insurance company, or life and accident, health and accident, or life, health and accident insurance company, organized under the laws of this State, shall, after the first day of January of each year and before the first day of March following and before the renewal of its certificate of authority to transact business, prepare, under oath of vo of its officers, and deposit in the office of the Commissioner of Insurance and Banking a statement, accompanied with the fee for filing annual statements of $10.00 showing the condition of the company on the 31st day of December the next preceding, which shall include a statement in detail showing the character of its assets and liabilities on that date, the amount and character of business transacted, moneys received and how expended during the year, and the number and amount of its policies in force on that date in Texas, and the total amount of all policies in force; and the Commissioner of Insurance and Banking may from time to time make such changes in the forms and requirements of the annual statements of companies as shall seem to him best adapted to elicit from the companies a true exhibit of their condition and method of conducting business, and such statement shall also contain and set forth an exhibit of the investments of such company; provided, that such terms and requirements shall elicit only such information as shall pertain to the business of the company.
SEC. 6. Whenever any life insurance company or accident insurance company or life and accident, or health and accident, or life, health and accident insurance company transacting insurance business in this State, shall have filed its annual statement in accordance with the preceding Section, showing a condition which entitles it to transact business in this State in accordance with the provisions of this Act, the Commissioner of Insurance and Banking shall, upon receipt of a fee of $1.00, issue a renewal certificate of authority to such company, which shall expire on the last day of February of the subsequent year.
Sec. 7. Any such company organized under the laws of this State,