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hereinafter defined, and in Texas real estate as hereinafter provided, a sum of money equal to at least seventy-five per cent. of the aggregate amount of the legal reserve required by the laws of the state of its domicile to be maintained on account of its policies of insurance in force written upon the lives of citizens of this State, which reserve is hereinafter denominated as its "Texas Reserves." And each such company, securing a certificate of authority to do business in this State, shall be deemed to have accepted such certificate subject to all of the conditions and requirements of this Act.

SEC. 2. The phrase "Texas Securities" as used in this Act shall be held to include bonds of the State of Texas, or of any county, city, town, school district or other municipality or sub-division which is now or may hereafter be constituted or organized and authorized to issue bonds under the Constitution and laws of this State, promissory notes and other obligations, the payment of which is secured by a mortgage, deed of trust or other valid lien upon unincumbered real estate situated in this State, the title to which real estate is valid and the market value of which is double the amount loaned thereon, exclusive of buildings, unless such buildings are insured ard kept insured in some company authorized to transact business in this State, and the policy or policies transferred to the company taking such mortgage or lien; the first mortgage bonds of any solvent corporation, incorporated under the laws of this State and doing business in this State, which has not in five years, next preceding the date of the investment by such company in such mortgage bonds, defaulted for more than three months in the payment of interest upon its bonds or indebtedness, the market value of which bonds is equal to the amount invested therein; and loans made to policy holders on the sole security of the reserve values of their policies. And the investments required by this Act, or any part thereof, may be made by the purchase of not more than one building site, and in the erection thereon of not more than one office building or in the purchase at its reasonable market value of such office building already constructed and the ground upon which the same is located in any city of the State, having a population of more than four thousand inhabitants. And all real estate owned by life insurance companies in this State, on December 31, 1909, and all thereafter acquired under the provisions of this Act, or by foreclosure of a lien thereon, shall be treated, to the extent of its reasonable market value, as a part of the investments required by this Act. And "Texas Securities" as used in the following Sections of this Act, shall be held to include every character of investment authorized by the terms of this Section.

SEC. 3. The investments required by this Act shall be made as follows:

(a) Each life insurance company which has a certificate of authority to transact business in this State when this Act takes effect, the total amount of whose investments in "Texas Securities" as of December 31, 1908, was equal to or exceeded seventy-five per cent of the amount of its "Texas Reserves" as of that date, shall have so invested not later than January 31, in each year, a sum of money equal to seventy-five per cent of the amount of its "Texas Reserves" as of the preceding December 31.

(b) Each life insurance company having a certificate of authority to transact business in this State when this Act takes effect, the amount of whose investments in "Texas Securities" as of December 31, 1908, was less than seventy-five per cent of the amount of its "Texas Reserves" as of said date, shall have so invested, not later than January 31 in each year, a sum at least equal to seventy-five per cent of the amount by which its "Texas Reserves" as of December 31 preceding, exceeded the amount of its "Texas Reserves" as of December 31, 1908, added to the amount of its total investments in "Texas Securities" as of said date: and each such company shall, in addition, have so invested not later than January 31, 1910, a sum at least equal to 10 per cent of the amount by which seventy-five per cent of its "Texas Reserves" as of December 31, 1908, exceeded the amount of its investments in "Texas Securities" as of said date, and annually thereafter it shall have invested, not later than January 31 an additional ten per cent of the amount of such excess, until the total amount of its investments in "Texas Securities" shall at least equal seventy-five per cent of its "Texas Reserves."

(c) Each life insurance company not having a certificate of authority to transact business in this State when this Act takes effect, or that may thereafter discontinue writing new business under such certificate, shall, if it again obtain a certificate of authority to transact business in this State, be required to have invested in "Texas Securities" annually as above provided, a sum equal to seventy-five per cent of its "Texas Reserves"; provided, that if on December 31 preceding the issuance of such certificate of authority, the amount of its investments in "Texas Securities" was less than seventy-five per cent of the amount of its "Texas Reserves" it shall be required to have so invested annually as above provided, a sum equal to seventy-five per cent of the increase in its "Texas Reserves" since December 31 last preceding the issuance of its certificate of authority, added to the amount of its total investment in "Texas Securities" as of said date; and in addition it shall, not later than January 31 in each year after the issuance of its certificate of authority, have so invested ten per cent of the amount by which seventy-five per cent of its "Texas Reserves" as of December 31 preceding the date of said certificate exceeded the amount of its total investments in "Texas Securities" as of that date, and shall have invested annually thereafter, not later than January 31 an additional ten per cent of such excess, until the total amount of its investments in "Texas Securities" shall at least equal seventy-five per cent of the amount of its "Texas Reserves." The proportionate amount of the "Texas Reserves" required by this Section to be invested in "Texas Securities" as of any date, shall thereafter be maintained; provided, that such investment shall not be required to be made by any life insurance company after it has ceased to do the business of life insurance or to write policies of life insurance

in this State.

SEC. 4. That each life insurance company doing business in this State, shall, not later than ten days after January 31 of each year, file with the Commissioner of Insurance and Banking of this State, on a blank prepared and furnished by him for that purpose, a report showing the entire amount of the reserve on its entire business in force in this State on December 31, preceding, and an itemized schedule of its in

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vestments in "Texas Securities," which report shall be sworn to by either the president or a vice president and the secretary of such company. Such report shall contain such other information as may be required by the commissioner to determine whether or not such company has continuously and in good faith complied with this law, and for that purpose the commissioner may, whenever he shall deem it proper, require such special or supplemental reports as he may deem necessary.

SEC. 5. Each life insurance company, not organized under the laws of this State, doing business in this State, shall on or before the first day of March, 1910, and annually thereafter, make a report to the Commissioner of Insurance and Banking of this State, which report shal! be sworn to by either the president or a vice president, and the secretary or treasurer of such company, showing the gross amount of premiums collected during the year ending on December 31, preceding, from citizens of this State upon policies of insurance; and each such company shall pay annually an occupation tax equal to three per cent of such gross premium receipts, such occupation taxes to be for and on account. of the business transacted within this State during the calendar year in which such premiums were collected or for that portion thereof during which the company shall have transacted business in this State while this Act was in force and effect; and upon receipt of such sworn statements showing the gross premium receipts by such company, the Commissioner of Insurance and Banking of this State shall certify to the Treasurer of this State the amount of taxes due by each such company for the preceding year, which taxes shall be paid to the State Treasurer for the use of the State, by such company; upon his receipt of such certificate, the Treasurer shall execute a receipt therefor, which receipt. shall be evidence of the payment of such taxes, and no such life insurance company shall receive a permit to do business in this State until such taxes are paid; provided, that when the report of the investments in Texas securities of any company as of December 31, of any year, shall show that such company had invested on said date as much as thirty (30) per cent of its total reserves in Texas securities, the rate of said occupation tax shall be reduced to two and one-half (21) per cent, and when such report shall show that such company had invested on said date as much as sixty (60) per cent of its total Texas reserves in Texas securities the rate of such occupation tax shall be reduced to two (2) per cent, and when such report shall show that as much as seventy-five (75) per cent of the total Texas reserves of such company was invested on said date in Texas securities, the rate of such occupation tax shall be reduced to one and one-half (13) per cent; provided, the investment in Texas securities of seventy-five (5) per cent of the Texas reserves provided for by this Act shall in any event be required of all such companies. If upon examination of any company or in any other manner the Commissioner of Insurance and Banking shall be informed that the gross premium receipts of any year exceeded in amount those shown by the report thereof, theretofore made as above provided, it shall be the duty of the commissioner to file with the State Treasurer a supplemental certificate showing the additional amount of taxes due by such company which shall be paid by such company upon notice thereof. It shall be the duty of the State Treasurer, if, within fifteen days after receipt by

him of any certificate or supplemental certificate provided for by this Section, the taxes due as shown thereby have not been paid, to report the facts to the Attorney General, who shall immediately institute suit in the proper court of Travis county, to recover such taxes.

SEC. 6. That no occupation tax other than herein imposed shall be levied by the State or any county, city or town upon any life insurance company herein subject to the occupation tax in proportion to its gross premium receipts, or its agents. The occupation tax imposed by this Act upon life insurance companies shall be the sole occupation tax which any company doing business in this State under the provisions of this Act shall be required to pay after this Act shall take effect.

SEC. 7. That each life insurance company not organized under the laws of this State hereafter granted a certificate of authority to transact business in this State shall be deemed to have accepted such certificate and to transact such business thereunder subject to the conditions and requirements that after it shall cease to transact new business in this State under a certificate of authority and so long as it shall continue to collect renewal premiums from citizens of this State it shall be subject to the payment of the same occupation tax in proportion to its gross premiums during any year, from citizens of this State as is or may be imposed by law on such companies transacting new business within this State under certificates of authority during such year; provided, that the rate of such tax to be so paid by any such company shall never exceed the rate imposed by this Act upon insurance companies transacting business in this State, and each such company shall make the same reports of its gross premium receipts for each such year and within the same period as is or may be required of such companies holding certificates of authority; and shall at all times be subject to examination by the Commissioner of Insurance and Banking or some one selected by him for that purpose, in the same way and to the same extent as is or may be required of companies transacting new business under certificates of authority in this State, the expenses of such examination to be paid by the company examined; and the respective duties of the Commissioner of Insurance and Banking in certifying the amount of such taxes and of the State Treasurer and Attorney General in their collection shall be the same as are or may be prescribed respecting taxes due from companies authorized to transact new business within this state.

SEC. 8. That any life insurance company which has heretofore been, may now be, or may hereafter be engaged in writing policies of insurance upon the lives of citizens of this State which has heretofore ceased or may hereafter cease writing such policies and which does not now or may not hereafter have a certificate of authority to transact the business of life insurance in this State, but which has continued or may continue to collect renewal or other premiums upon such policies, shall, before it may again obtain a certificate of authority to transact the business of life insurance in this State, report under oath to the Commissioner of Insurance and Banking of this State, the gross amount of premiums so collected from citizens of this State upon policies of insurance during each calendar year since the end of the period covered by the last preceding report by such company of gross premium receipts upon which it paid an occupation tax, and shall pay to the State a sum equal to the

percentage of its gross premium receipts for each such year that was required by law to be paid as occupation taxes by companies doing business in this State during such year or years and upon the payment of such sum and securing a certificate of authority to do business in this State the penalties provided for the failure to pay such taxes and make such reports in the past shall be remitted.

SEC. 9. Any company which shall fail to renew its certificate of authority or continue to write new business in this State shall, nevertheless, have the right to maintain an agent or agents in Texas for the purpose of collecting renewal premiums on outstanding business written by it under a certificate of authority, and also for the purpose of making investments as provided by this Act.

SEC. 10. If any life insurance company, while holding a certificate of authority to transact business in this State, shall fail or refuse to comply with any of the provisions or requirements of this Act, it shall be the duty of the Commissioner of Insurance and Banking, upon ascertaining such fact, to notify such company by registered letter properly addressed and mailed, or by any other form of actual notice in writing delivered to an executive officer of such company, of his intention to revoke its certificate of authority to transact business in this State at the expiration of thirty days after the mailing of such registered letter, or the date upon which such actual notice is served; and if such provisions or requirements are not fully complied with upon the expiration of said thirty days, it shall be the duty of the Commissioner of Insurance and Banking to revoke the certificate of authority of such company, and in case of such revocation such company shall not be entitled to receive another certificate of authority for a period of one year and until it shall have fully and in good faith complied with all such provisions and requirements of this Act. Any company feeling itself aggrieved by the action of the commissioner in revoking its certificate of authority to do business in this State may bring suit against him in the court of Travis county having jurisdiction thereof, to annul and vacate the order revoking such certificate.

SEC. 11. If any company shall intentionally fail or refuse to make the investments required by this Act or make any report required by this Act, or to make any special report requested by the Commissioner of Insurance and Banking under the authority of this Act, or generally to comply with any provision or requirement of this Act, while holding a certificate of authority to transact business in this State, or after it shall cease to write new business or cease to hold such certificate, such failure or refusal shall subject such enpany in addition to the penalty provided in Section 10, in cases to which said Section may be applicable, to the payment of a penalty of twenty-five dollars ($25) per day for each day that such company shall remain in default after the Commissioner of Insurance and Banking shall notify such company of such default, in the manner provided in Section 10 hereof, to be recovered in a suit to be brought by the Attorney General in behalf of the State in the district court of Travis county. And in any suit that may be brought to recover such penalty or penalties there shall be a prima facie presumption subject to rebuttal that any default that may have occurred was intentional, and that the notice required by this Act was given and

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