Page images

SEC. 57. The assets of any company not organized under the laws of this State shall be invested in securities or property of the same classes permitted by the laws of this State as to home companies or by other laws of this State in other securities approved by the Commissioner of Insurance and Banking as being of substantially the same grade.

SEC. 58. Any officer of any insurance company not organized under the laws of this State, who shall file with the Commissioner of Insurance and Banking any statement, report or other paper required or provided for by law to be so filed, which shall contain any material statement or fact known to be false by the person filing the same, or any person who shall execute or cause to be executed any such false statement, report or other paper to be so filed, shall be deemed guilty of a felony and upon conviction shall be punished by imprisonment in the penitentiary for a term of not less than one year.

SEC. 59. In addition to the duties required of the Commissioner of Insurance and Banking by this Act he shall perform other duties as follows:

1. To see that all laws respecting insurance and insurance companies are faithfully executed.

2. To file and preserve in his office all acts or article of incorporation of insurance companies and all other papers required by law to be deposited with him, and, upon application of any party interested therein, to furnish certified copies thereof upon payment of the fees prescribed by law.

3. He shall as soon as practicable in each year calculate or cause to be calculated in his office by an officer or employe of his department, the net value on the 31st day of December of the previous year, of all the policies in force on that day in each life or health insurance company doing business in the State, upon the basis and in the manner prescribed by law.

4. Having determined the net value of all the policies in force it shall be his duty to see that the company has in safe securities of the class and character required by the laws of this State the amount of said net value of all its policies, after all its debts and claims against it and at least one hundred thousand dollars of surplus to policy holders have been provided for.

5. He may accept the valuation made by the insurance commissioner of the state under whose authority a life insurance company was organized, when such valuation has been properly made on sound and recognized principles, as a legal basis as above, provided the company shall furnish to him a certificate of the insurance commissioner of such states, setting forth the value calculated on the data designated above of all the policies in force in the company on the previous thirty-first day of December, and stating that after all other debts of the company and claims against it at that time, and one hundred thousand dollars surplus to policy holders, were provided for, the company had, in safe securities. of the character required by the laws of this State, an amount equal to the net value of all its policies in force, and that said company is entitled to do business in its own state.

6. Every life insurance company doing business in this State during

the year for which the statement is made that fails promptly to furnish the certificate aforesaid, shall be required to make full detailed lists of policies and securities to the Insurance Commissioner, and shall be liable for all charges and expenses consequent upon not having furnished said certificates.

7. For every company doing fire insurance business in this State he shall calculate the reinsurance reserve for unexpired fire risks by taking fifty per cent of the premiums received on all unexpired risks that have less than one year to run, and a pro rata of all premiums received on risks that have more than one year to run; provided, that when the reinsurance reserve, calculated as above, is less than forty per cent of all the premiums received during the year, the reinsurance reserve in this case shall be the whole of the premiums received on all of its unexpired risks. For every company transacting any kind of insurance business in this State, for which no basis is prescribed by law, he shall calculate the reinsurance reserve upon the same basis prescribed in this Section as to companies transacting fire insurance business.

8. In marine and inland insurance he shall charge all the premiums received on unexpired risks as a reinsurance reserve.

9. Having charged against a company other than life the reinsurance reserve, as prescribed by the laws of this State, and adding thereto all other debts and claims against the company, he shall, in case he find the capital stock of the company impaired to the extent of twenty per cent, give notice to the company to make good its whole capital stock within sixty days, and if this is not done he shall require the company to cease to do business within this State, and shall thereupon, in case the company is organized under authority of the State, immediately institute legal proceedings to determine what further shall be done in the


10. The commissioner shall publish the result of his examination of the affairs of any company whenever he deems it for the interest of the public.

11. He shall suspend the entire business of any company of this State and the business within this State of any other company during its non-compliance with any provision of the laws relative to insurance or when its business is being fraudulently conducted, by suspending or revoking the certificate granted by him, and he shall give notice thereof to the insurance commissioner or other similar officer of every state and shall publish notice thereof, provided that he shall give such company at least ten days notice in writing of his intention to suspend its right to do business or revoke the certificate of authority granted by him, stating specifically the reason why he intends to so suspend or revoke such certificate of authority.

12. He shall report promptly and in detail to the Attorney General any violation of law relative to insurance companies or the business of insurance.

13. He shall furnish to the companies required to report to him the necessary blank forms for the statements required.

14. He shall preserve in a permanent form a full record of his proceedings and a concise statement of the condition of each company or agency visited or examined.

∙15. At the request of any person, and on the payment of the legal fee, he shall give certified copies of any record or papers in his office when he deems it not prejudicial to public interest, and shall give such other certificates as are provided for by law.

16. He shall report annually to the Governor the names and compensations of his clerks, the receipts and expenses of his department for the year, his offical acts, the condition of companies doing business in this State, and such other information as will exhibit the affairs of said department.

17. He shall send a copy of such annual report to the insurance commissioner or other similar officer of every state and to each company doing business in the State.

18. On request, he shall communicate to the insurance commissioner or other similar officer of any other state, in which the substantial provisions of the law of this State relative to insurance have been or shall be enacted, any facts which by law it is his duty to ascertain respecting the companies of this State doing business within such other state.

19. He shall see that no company is permitted to transact the business of life insurance in this State whose charter authorizes it to do a fire, marine, lightning, tornado, or inland insurance business, and that no company authorized to do a life or health insurance business in this State be permitted to take fire, marine or inland risks.

20. The Commissioner of Insurance and Banking shall admit into this State, mutual insurance companies organized under the laws of other states and who have $200,000.00 assets in excess of liabilities engaged in cyclone, tornado, hail and storm insurance.

SEC. 60. The Commissioner of Insurance and Banking may from time to time make such changes in the forms of the annual statements required of insurance companies of any kind as shall seem to him best adapted to elicit a true exhibit of their condition and methods of transacting business. Provided, that such terms and requirements shall elicit only such information as shall pertain to the business of the company.

SEC. 61. It shall not be lawful for any insurance company organized under the laws of this State to make any dividend except from surplus profits arising from its business, and in estimating such profits there shall be reserved therefrom the lawful reserve on all unexpired risks and also the amount of all unpaid losses, whether adjusted or unadjusted, and all other debts due and payable or to become due and payable by the company. Any dividends made contrary to the provisions of this Article, shall subject the company making them to a forfeiture of its charter and the Commissioner of Insurance shall forthwith revoke its certificate of authority; provided, that he shall give such company at least ten days notice in writing of his intention to revoke such certificate, stating specifically the reasons why he intends to revoke same.

SEC. 62. Corporations may be incorporated under the laws of this State to transact any one or more kinds of insurance business other than life, fire, marine, inland, lightning or tornado insurance business in the same manner and by complying with the same requirements as prescribed by law for the incorporation of life insurance companies; provided, that no such company, shall be incorporated having the power to do a fidelity

and surety business or a liability insurance business with a paid up capital stock of less than $200,000.

SEC. 63. Whenever any person shall refuse to appear and testify or to give information authorized by this Act to be demanded by the Commissioner of Insurance, such commissioner may file his application under oath with any district judge or district court within this State, where said witness is summoned to appear, and it shall be the duty of said judge to summon said witness, administer oaths as required by law and require answers to such questions, and such judge or court shall have power to punish for contempt as now provided by law.

SEC. 64. Sheriffs and other peace officers of this State shall execute process directed to them by the Commissioner of Insurance and make return thereof to him as in the case of process issued from any of the courts.

SEC. 65. None of the terms or provisions of this Act shall apply to nor in any wise affect fraternal beneficiary associations as defined by the laws of this State, nor apply to companies carrying on the business of life or casualty insurance on the assessment or annual premium plan, under the provision of Articles 3090, 3091 and 3092, Revised Civil Statutes of the State of Texas.

SEC. 66. The Commissioner of Insurance and Banking for the purpose of examination authorized by law, has power either in person or by one or more examiners by him commissioned in writing:

1. To require free access to all books and papers within this State of any insurance companies or the agents thereof doing business within this State.

2. To summon and examine any person within this State, under oath, which he or any examiner may administer, relative to the affairs and con ditions of any insurance company.

3. To visit at its principal office, wherever situated, any insurance company doing business in this State, for the purpose of investigating its affairs and conditions, and shall revoke the certificate of authority of any such company in this State refusing to permit such examination. The reasonable expenses of all such examinations shall be paid by the company examined.

4. He may revoke or modify any certificate of authority issued by him when any conditions prescribed by law for granting it no longer exist. 5. He shall also have power to institute suits and prosecutions, either by the Attorney General or such other attorney as the Attorney General may designate, for any violations of the law of this State relating to insurance, and no action shall be brought or maintained by any person other than the Commissioner of Insurance and Banking for closing up the affairs or to enjoin, restrain or interfere with the prosecution of the business of any such insurance company organized under the laws of this State.

SEC. 67. No life insurance company doing business in this State and no officer, director or agent thereof, shall issue or circulate or cause or permit to be issued or circulated any estimate, illustration, circular or statement of any sort misrepresenting the terms of any policy issued by it or benefits or advantages to be promised thereby or the dividends or share of surplus to be received thereon.

SEC. 68. No recovery upon any life, accident or health insurance policy shall ever be defeated because of any misrepresentation in the application which is of an immaterial fact and which does not affect the

risks assumed.

SEC. 69. Article 3049 of the Revised Civil Statutes as amended by the Thirtieth Legislature and Articles 3047 and 3048 and 3096y of the Revised Civil Statutes of Texas, Articles 3050 and 3051 of the Revised Civil Statutes of Texas as amended by the Twenty-fifth Legislature, Called Session, 1897, Articles 3052 and 3053 of the Revised Civil Statutes of Texas, all Chapter 4 of Title 58, and Articles 3062, 3063, 3064, 3065, 3066, 3067, 3068, 3069, 3070, 3071, 3072, 3073, 3085, and 3088 of the Revised Civil Statutes of Texas, be and the same are hereby repealed.

SEC. 70. The crowded condition of the calendar and the near approach of the end of the Session create an emergency and an imperative public necessity that the Constitutional rule requiring bills to be read on three several days be suspended and that this Act take effect from and after its passage, and it is so enacted.

Approved March 22, 1909.

Takes effect ninety days after adjournment.

[Section 37 of the foregoing Act was amended by Chapter 20, General Laws, First Called Session of the Thirty-first Legislature, which became a law April 19, 1909.]


[blocks in formation]

An Act to provide for the taking and perpetuation of evidence for the purpose of establishing the identity of Confederate veterans, and such facts as will prove their right to a pension under and by virtue of the pension laws of Texas, and declaring an emergency.

Be it enacted by the Legislature of the State of Texas:

SECTION 1. Any Confederate veteran, soldier or sailor, who may be entitled to a pension under and by virtue of the pension laws of Texas, who may be desirous of establishing such right by the evidence of any person who may be cognizant of such facts as would prove and establish his such right, may cause such person or persons to go before the county judge or any notary public of the county of the residence of such person and make a statement in writing of all facts within his knowledge concerning and relating to the service as a soldier or sailor in the army or navy of the Southern Confederacy, during the Civil War, such statement in writing when made to be duly subscribed and sworn to by the person making the same.

SEC. 2. Any such statement as provided for in Section 1 of this Act, made and reduced to writing duly authenticated, shall be filed with the Secretary of State and by him recorded in a book to be kept for such purpose, a properly certified copy of which shall be admitted and used in evidence, at any future time, to prove and establish the right of the

« PreviousContinue »