3 company referred to in this chapter except as solicitor under 4 section fifteen-c of this law, without first procuring a certificate 5 of authority as agent from the insurance commissioner, which

certificate shall be renewable on the first day of April in each 7 year; and said insurance commissioner shall not issue such cer8 tificate of authority to any person who is not a resident of this 9 state, and whom he finds not trustworthy and competent to 10 transact the business for authority to do which application is 11 made; and on conviction of any person acting as such agent, 12 of the violation of any provision of this law the insurance com13 missioner shall forthwith revoke the certificate of authority is14 sued to him, and no certificate shall be thereafter issued to such 15 convicted person, until one year from the date of conviction. 16 Whenever the insurance commissioner upon investigation is 17 satisfied that any agent acting under his supervision and hold18 ing a certificate of authority from him is violating or has viol19 ated the insurance laws of West Virginia, or that he is incom20 petent or untrustworthy, or whenever he shall proceed to re21 voke a certificate or license of such agent under any section of 22 this law he shall notify such agent of his findings, and state in 23 writing the complaint against him and require such person on 24 a date named, which date shall not be less than thirty days 25 after service of notice, to show cause why his license should not 26 be revoked.

27 If on the date named in said notice the said agent does not 28 present good and sufficient reasons why his authority to trans29 act business in this state should not be revoked, the said com30 missioner may revoke such person's certificate of authority. All 31 decisions and findings of the insurance commissioner made un32 der the provisions of this section shall be reviewable by proper 33 proceedings in any court of competent jurisdiction within this 34 state; provided, however, that nothing contained in this section 35 shall be taken or construed as preventing any such agent from 36 doing business under the authority of such certificate during 37 the pending of any proceeding taken to review an adverse de38 cision of the insurance commissioner.

Sec. 35. Every fire and every fire and marine insurance com2 pany doing business in this state shall annually, on or before 3 March first, render to the insurance commissioner a report, sign4 ed and sworn to by its president and secretary, of its condition 5 on the thirty-first of December next preceding, in the following 6 form, namely: first, the amount of its capital stock; second, its 7 assets, specifying-(1) the value of its real estate; (2) the

8 amount of its cash on hand and in bank, specifying where it is 9 deposited; (3) the amount of cash in the hands of agents and 10 in course of transmission; (4) the amount of loans secured by 11 mortgages on which there shall be less than one year's in12 terest due; (5) the amount of such loans with one year's interest 13 or more due thereon; (6) the amount due on judgments; (7) 14 the amount of its stocks and bonds, with the description of 15 amount, number of shares, and the par and market value of 16 each; (8) the amount of stocks and bonds held as collateral 17 security for loans, with the amount loaned on each and the par 18 and market value thereof; (9) the amount of assessments on 19 stock or premium notes, paid or unpaid; (10) the amount of 20 interest accrued and unpaid; (11) the amount of premium notes 21 on hand on which policies are issued; third, its liabilities, spec22 ifying (1) the amount of losses due and unpaid; (2) the 23 amount of unpaid losses not paid; (3) the amount of claims for 24 losses resisted by the company; (4) the amount of losses in25 curred during the year, including those claimed and not yet 26 due, and those reported to the company upon which no action 27 has been taken; (5) the amount of dividends due and unpaid; 28 (6) the amount of dividends, either cash or script, not yet pay29 able; (7) the amount of money borrowed, and security given. 30 for the payment thereof; (8) the amount of premiums received 31 on all risks not terminated; (9) the amount required to re32 insure all fire risks in force, computed at fifty per cent of the 33 gross amount of fire premiums less return premiums and re34 insurance received on risks in force, and not perpetual; ninety35 five per cent of premiums on perpetual risks in force, and one 36 hundred per cent of the amount of ocean marine premiums re37 ceived on risks in force, excepting on time hull risks which may 38 be computed at fifty per cent of the amount of premiums re39 ceived on risks in force; (10) the amount of all other claims 40 against it; fourth, its income during the preceding year, spec41 ifying (1) the amount of cash premiums received; (2) the 42 amount of notes received for premiums; (3) the amount of in43 terest money received; (4) the amount of income received from 44 other sources; fifth, its expenditures during the preceding year, 45 specifying (1) the amount of losses paid, stating how much of 46 the same accrued prior and how much subsequent to its pre47 ceding statement and the amount at which such losses were es48 timated in such statement; (2) the amount of dividends paid; 49 (3) the amount of expenses paid, including agent's commis

50 sions; (4) the amount paid in taxes; (5) the amount of all 51 other expenditures.

Sec. 36. No fire or fire and marine insurance company or 2 association incorporated or organized under the laws of this 3 state or of any other state, territory or county of the United 4 States or the District of Columbia, or any foreign country shall, 5 directly or indirectly, take risks or transact any business in 6 this state unless possessed of at least one hundred thousand dol7 lars cash capital paid up and securely invested, and every such 8 company shall deposit with the insurance commissioner a cer9 tified copy of its charter and a statement under oath of its 10 president or vice-president, and secretary or other proper offi11 cer, stating its name and location and other particulars re12 quired by section thirty-five. No such companies or associa13 tions shall make contracts of insurance on property in this state 14 except through lawfully constituted and licensed resident 15 agents, nor shall any person act as agent for any such company 16 directly or indirectly taking risks or transacting the business 17 of fire insurance in this state, without procuring from the in18 surance commissioner a certificate of authority stating that such 19 company has complied with all the requirements of the law. 20 Such certificate shall continue in force as provided in section 21 fifty-eight unless revoked for cause. The statement required 22 by this section shall be made annually on or before March first, 23 and shall specify the amount of premiums received and losses 24 paid in this state during the preceding year; and said commis25 sioner, on being satisfied that the capital, securities, and in26 vestments, remain secure shall furnish a renewal of his cer27 tificate.

Sec. 56. No person shall act as agent of any insurance com2 pany, corporation, association, partnership, or combination of 3 persons incorporated, organized, associated, or combined under 4 or by virtue of the laws of this or any other state of the United 5 States or any foreign country, directly or indirectly taking risks 6 or transacting any kind or form of insurance business in this 7 state, without procuring from the insurance commissioner a cer8 tificate of authority, stating that such company, corporation, 9 association, partnership or combination of persons, has complied 10 with all the laws of this state relative to such companies, cor11 porations, associations, partnerships or combinations of per12 sons, which certificate shall continue in force until the first of 13 April next after its issue, unless revoked for cause.

Sec. 58. All certificates or licenses issued by the insurance 2 commissioner to companies or associations of this state, or to 3 companies or associations, existing under the laws of any other 4 state or foreign government, to an agent of any such company 5 or association, shall continue in force until the first day of 6 April next following their issue, unless the same be sooner re7 voked. Provided, however, nothing in this act or in chapter 8 thirty-four of Barnes' West Virginia code, one thousand nine 9 hundred and twenty-three edition, shall be held to relate to or 10 apply to farmers' mutual fire insurance companies organized 11 under chapter fifty-five of said code.

12

All acts or parts of acts inconsistent with this act are hereby 13 expressly repealed.

CHAPTER 16

(Senate Bill No. 164-Mr. Porter)

AN ACT to amend and re-enact section forty of chapter seventyseven of the acts of the legislature of one thousand nine hundred and seven, (being section forty of chapter thirty-four of Barnes' code of one thousand nine hundred and eighteen) relating to the scope of fire insurance, and repealing chapter eighteen of the acts of the legislature of West Virginia of one thousand nine hundred and seventeen, (being section seventyseven of chapter thirty-four of Barnes' code of one thousand nine hundred and eighteen) relating to automobile insurance. [Passed April 12, 1923. In effect ninety days from passage. Governor April 21, 1923]

Be it enacted by the Legislature of West Virginia:

Approved by the

That section forty of chapter seventy-seven of the acts of the legislature of one thousand nine hundred and seven, (being section forty of chapter thirty-four of Barnes' code of one thousand nine hundred and eighteen) be amended and re-enacted so as to read as follows:

Section 40. Insurance companies authorized under the laws 2 of this state having power to insure against loss by fire, may 3 make insurance against loss or damage to dwelling houses, 4 stores and all kinds of buildings and household furniture, 5 goods, merchandise and chattels of every description, and all

6 other property by fire, lightning, windstorm, tornado, cyclone, 7 earthquake, hail, frost or snow, weather or climatic conditions, 8 including excess or deficiency of moisture, flood, rain or 9 drought, rising of the waters of the ocean or its tributaries 10 and rivers, bombardment, invasion, insurrection, riot, strike, 11 civil war or commotion, military or usurped power, and by 12 explosion whether fire ensues or not; also against loss or dam13 age by insects or disease to farm crops or products and loss of 14 rental value of land used in producing such crops or products; 15 and also against loss or damage by water or other fluid to any 16 goods or premises arising from the breakage or leakage of 17 sprinklers, pumps or other apparatus erected for extinguish18 ing fires, or of other conduits or containers, or by water enter19 ing through leaks or openings in buildings and of water pipes, 20 and against accidental injury to such sprinklers, pumps, ap21 paratus, conduits, containers or water pipes; and against loss 22 or damage upon vessels, boats, cargoes, goods, merchandise, 23 freight and other property by all or any of the risks of lake, 24 river, canal and inland navigation and transportation; and 25 also loss or damage upon automobiles, and airplanes, seaplanes, 26 dirigibles or other aircraft whether stationary or being oper27 ated under their own power, which shall include all or any of 28 the hazards of fire, explosion, transportation, collision, loss by 29 legal liability for damage to property, resulting from the 30 maintenance and use of automobiles, air planes, seaplanes, 31 dirigibles or other aircraft; and loss by burglary or theft, 32 vandalism or malicious mischief, or the wrongful conversión, 33 disposal or concealment of automobiles, whether held under 34 conditional sale contract or subject to chattel mortgages, or 35 any or more of such hazards, but shall not include insurance 36 against loss by reason of bodily injury to the person, nor loss 37 caused by breach of trust; provided, the subject of the insur38 ance and the risk, hazard or peril insured against shall be ex39 pressly set forth in the policy of insurance, and shall include 40 the right to effect reinsurance of any risks taken by them in 41 authorized and admitted companies in this state.

42 All acts and parts of acts inconsistent with the provisions 43 of this act are hereby repealed, including chapter eighteen of 44 the acts of the legislature of one thousand nine hundred and 45 seventeen, the same being section seventy-seven of chapter 46 thirty-four of Barnes' code of West Virginia of one thousand 47 nine hundred and eighteen.