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doing business in this state, with a condensed statement of their reports made to him, an abstract of all accounts rendered to any court by the receivers of insolvent insurance companies, and the reports, or abstracts of the reports made to the insurance commissioner by such receivers, together with a statement of the fees received from all such companies and paid by him into the state treasury.
Life Insurance Companies.
Sec. 7. Every life insurance company chartered by this state shall, on or before the first of March in each year, render to the insurance commissioner a report, signed and sworn to by its president and secretary or other proper officers, of its condition upon the preceding thirty-first of December, which shall include a detailed statement of its assets and liabilities on that day; the amount and character of the business transacted, moneys received and expended during the year, a descriptive list of all policies and contracts of insurance in force on that day, sufficient to enable the commissioner to calculate the reserve, and such other information as the commissioner may deem necessary.
Sec. 8. Upon the receipt of such report the commissioner shall make a valuation of all outstanding policies, additional thereto, unpaid dividends and all other obligations of such company; all valuations made by him or by his authority shall be made upon the net premium basis, according to the standard of valuations adopted by the company for the obligation to the valued; provided, that in every case the standard of valuation employed shall be stated in his annual report. Any company may adopt different standards for obligations of different dates or classes, but if the total value determined by any such standard for the obligations for which it has been adopted shall be less than that determined by the legal minimum standard hereinafter prescribed, or if the company adopt no standard, said legal minimum standard shall be used; the commissioner may vary the standards of interest and mortality in the case of corporations from foreign countries and in particular cases of invalid lives and other extra hazards, and value of policies in groups, use approximate averages for fractions of a year or otherwise, and caluculate values by net premiums or otherwise, and accept the valuation of the department of insurance of any other state in place of the valuation herein required if the insurance officer of such state accepts as sufficient and valid for all purposes, the certificate of valuation of the insurance commissioner of this state.
It is also provided that policies issued by companies doing business in this state may provide for not more than one year preliminary term insurance; provided, however, that if the premium charged for term insurance under a limited payment life preliminary term policy providing for the payment of all premiums thereon in less than twenty years from the date of the policy, or under an endowment preliminary term policy, exceeds that charged for like insurance under whole life preliminary term policies of the same company, the reserve thereon at the end of any year, including the first, shall not be less than the reserve on a whole life preliminary term policy issued in the same year and at the same age, together with an amount which shall be equivalent to the accumulation of a net level premium sufficient to provide for a pure endowment at the end of the premium payment period, equal to the difference between the value at the end of such period of such a whole life preliminary term policy and a full reserve at such time of such a limited payment life or endowment policy.
The legal minimum standard for contracts issued before the . first day of January, A. D., one thousand nine hundred and one, shall be actuaries' or combined experience table of mortality with interest at four per centum per annum, and for contracts issued on or after said date shall be the American experience table of mortality with interest at three and one-half per centum per annum, except, however, that any such life insurance company may at any time elect to reserve upon a three per centum reserve basis, and then upon its policies issued upon such reserve, shall be computed upon the basis of the American experience table of mortality with interest at three per centum per annum and except as hereinbefore provided.
Sec. 9. Payments in form of dividends or otherwise shall not be made to its stockholders by any life insurance company organized under the laws of this state, unless its assets exceed by the amount of such payment the amount of its paid up capital stock and all of its liabilities, including its reinsurance reserve upon policies is. sued before January first, one thousand nine hundred and one, computed upon the basis of the actuaries, or combined experience table of mortality with compound interest at four per cent per an
num, and upon policies issued after said date, computed upon the American experience table of mortality with compound interest at three and one-half per centum per annum; and no payment shall be made to the policy holders of any such company except for matured claims and in the purchase of surrendered policies, unless the assets of such company exceed by the amount of such pay. ments its liabilities, including its reinsurance reserve, computed as above provided in this section; but for all other purposes the reinsurance reserve of every such company shall be computed as provided in section eight.
Sec. 10. Every officer or director of any such company who knowingly votes or assents to any payment either to stockholders or policy holders in violation to any of the provisions of section nine shall forfeit to the state the sum of five thousand dollars to be recovered in an action brought in the name of the insurance commissioner of the state.
Sec. 11. The insurance commissioner shall at least once in four years, visit each life insurance company incorporated by this state; thoroughly examine its financial condition, and ascertain whether it has complied with all the provisions of this law.
Sec. 12. The commissioner may in like manner, examine any life insurance company not incorporated by this state but doing business herein, and may employ assistants in making the examination; and all the expenses of an examination without the state shall be borne by the company examined.
Sec. 13. For such purposes the commissioner shall have free access to all books and papers of any life insurance company doing business in this state, and may examine under oath, its officers or agents relative to its condition; and if any company not incorporated by this state, or its officers or a gents, shall refuse to submit to such examination, or to comply with any provisions of this chapter, the authority of such company to do business in this state shall be revoked.
Sec. 14. No life insurance company incorporated by this state shall issue policies until, upon examination by the commissioner, it shall be found to have complied with the laws thereof, nor until he shall have issued his certificates setting forth such fact and authorizing such company to issue policies.
Sec. 15. No life insurance company doing business in this state shall make or permit any distinction or discrimination in favor of individuals between insurance (the insured) of the same class and equal expectation of life in the amount of payment of premiums or rates charged for policies of life or endowment insurance, or in the dividends or other benefits payable thereon, or in any other of the terms and conditions of the contracts it makes; nor shall any such company or agent thereof make any contract of insurance or agreement as to such contract other than as plainly expressed in the issued policy thereon; nor shall any such company or any officer, agent, solicitor, or representative thereof, pay, allow or give, or offer to pay, allow or give directly or indirectly as inducement to insurance, any rebate of premium payable on the policy, or any special favor or advantage in the dividends or other benefits to accrue thereon, or any paid employment or contract for services of any kind or any valuable consideration or inducement whatever not specified in the policy contract of insurance, or give, sell or purchase, or offer to give, sell or purchase as inducement to insurance or in connection therewith any stocks, bonds or other securities of any insurance company or other corporation, association or partnership, or any dividends or profits to accrue thereon or anything of value whatsoever not specified in the policy, and any policy sol in violation of this clause shall be null and void.
Sec. 16. No. person shall act in the solicitation or procurement of applicants for, or policies of insurance for any company referred to in this chapter, without first procuring a certificate of authority as agent from the insurance commissioner, which certificate shall be renewed on the first of March of each year; and on conviction of any person acting as such agent, sub-agent or broker of the violation of any provision of section fifteen, the insurance commissioner shall forthwith revoke the certificate of authority issued to him and no certificate shall be thereafter issued to said convicted person until after three years from the date of conviction ; every person violating any provision of section fifteen or of this section shall be fined not more than five hundred dollars.
Sec. 17. Life insurance companies chartered by and doing business in this state, and empowered to make contracts contingent upon life, may grant and issue annuties either in connection with or separate from contracts of insurance predicted upon life risks; and all such annuities heretofore issued by such companies shall be valid.
Sec. 18. Every life insurance company organized under the laws of any other state or country, before being admitted to do business in this state, on or before the first of March annually, shall furnish to the insurance commissioner, on blanks to be furnished by him for that purpose, a full report of its condition on the preceding thirty-first of December, duly sworn to by its president and secretary or other proper officer; together with a certificate of the proper officers of the government by whose authority it is organized, of a valuation of its policies by said officers by a standard équivalent to that provided in sections eight and nine, and that it has complied with the laws of such government and is authorized to transact business therein; if said commissioner is satisfied with said certificate, and if said company shall have complied with all other provisions of law, he shall thereupon issue his license to it to transact business in this state, which shall continue in force as provided in section fifty-eight, unless sooner revoked for cause; but no such license shall be issued unless such certificate is furnished, nor unless such government shall license life insurance companies incorporated by this state to transact business within its jurisdiction upon a similar certificate from the insurance commissioner, until such company makes the report required by companies incorporated by this state. The insurance commissioner may accept the valuation of the policies of any such company made by the proper officer of the government by whose authority it is organized, providing such officer accepts the valuation made by said commissioner of policies of companies incorporated by this state; otherwise said commissioner may at his discretion value such policies.
Sec. 19. No person or corporation or association shall issue or deliver within this state any policy or contract of insurance of a life insurance company or association, which has not obtained a license to transact business within this state and complied with all the laws of this state in regard thereto, or after revocation of such license.
Sec. 20. If the insurance commissioner shall at any time find that the assets of any life insurance company incorporated by this state are less than its liabilities, or if such company shall fail to comply with any requirement of law, he may notify it to cease the issue of new policies or the payment of dividends to stockholders, or both, until the deficiency be made good or the law complied with; and he may bring his petition to the circuit court of the county in which the principal office of such company is located, or to the