paid, canceled, extinguished, or reinstated, he must deliver up to the corporation the securities deposited. And whenever the laws of any other state or country, by reason of which section six hundred and twenty-two of the Political Code of this state is brought into force, shall be repealed and abrogated, and any deposit which shall have been made with the commissioner, under and by reason of said section six hundred and twenty-two of the Political Code, must be delivered up to the company or corporation making the deposit. En. March 12, 1872; Amd. 1877-78, 19.

Legislative History.

This section is based on section 3 of the insurance act of 1870, page 321. The original section is as follows: "Sec. 620. Whenever any life insurance corporation has so deposited its securities, and has paid, canceled, or reinsured all its unexpired policies, and all its liabilities under such policies are extinguished or assumed by other responsible corporations having a similar deposit with the commissioner, then if, on application of such corporation, verified by the oath of its president and secretary, and from an examination of the books of the corporation and of its officers under oath, the insurance commissioner is satisfied that all of its policies are so paid, canceled, extinguished, or reinsured, he must deliver up to the corporation the securities deposited."

EXAMINATION OF SECURITIES, DEFICIENCIES.

Sec. 621, Pol. C. The commissioner must make an annual examination of the securities received by him from each insurance company or corporation, and if it appear at any time that the securities deposited by any such company or corporation amount to less than the sum required for the purposes for which the deposit was made, he must notify the company or corporation thereof, and unless the deficiency is made up within thirty days after notice, the commissioner must countermand all the certificates he may have issued to the company or corporation. under this chapter, and give notice thereof to the officers of the several states to whom the certificate may have been transmitted, and he must also publish the notice for three weeks successively in some daily newspaper published in the city of San Francisco, at the expense of the company or corporation, to be collected by assessment upon the company or corporation, or

its duly appointed agent in this state. En. March 12, 1872. Amd. 1877-78, 19.

Legislative History.

This section is based on section 4 of the insurance act of 1870, page 321. The original section applied only to life insurance corporations, and provided for publication in a Sacramento newspaper as well as in a San Francisco newspaper.

RETALIATORY CLAUSE.

Sec. 622, Pol. C. When by the laws of any other state or country, any taxes, fines, penalties, licenses, fees, deposits of money or of securities, or other obligations or prohibitions are imposed on insurance companies of this state doing business in such other state or country or upon their agents therein, in excess of such taxes, fines, penalties, licenses, fees, deposits of securities, or other obligations or prohibitions, imposed upon insurance companies of such other state or country, so long as such laws continue in force, the same obligations and prohibitions of whatsoever kind must be imposed upon insurance companies of such other state or country doing business in this state. And whenever under this section any deposit of security shall be made in this state, such deposit shall be made in stocks or bonds of the United States government, or in those of the state of California, or in interest-bearing bonds of any of the counties or incorporated cities and towns of the state of California, not in default for interest on such bonds, which said securities must be estimated at not exceeding their par value nor their market value. En. March 12, 1872. Amd. 1873-74, 11; 1877-78, 20; 1897, 242.

Legislative History.

This section is based on section 5 of the insurance act of 1870, page 321. "Sec. 622. Whenever the laws of any state of the United States require of insurance companies incorporated under the laws of this state and having agencies in such other state, or of the agents thereof, any further or greater license, fees, charges, impositions, taxes, deposit of securities, statements, publications, or certificates of authority, or inflict any greater fines or penalties upon such corporations or agents than are required from similar companies or agents of other states doing business in this state, then and in every such case, from every company, person, or corporation of such other state which has or is about to establish

agencies in this state, the commissioner must, before it continues or commences to do business in this state, collect the same license, fees, charges, impositions, and taxes, and require the same statements, publications, certificates of authority, and the same deposit of securities as are required by the laws of such state of similar companies, persons, or corporations, and agents of this state, doing business in such other state; and the same fines and penalties must be inflicted upon companies, persons, or corporations of such other states, and their agents, as are inflicted by such states upon companies, persons, or corporations of this state, and their agents, under the laws of such other states.'

FOREIGN INSURANCE CORPORATIONS OTHER THAN LIFE, TAX ON PREMIUMS.

Sec. 622a, Pol. C. Every insurance company or association other than life, not organized or incorporated under the laws of California, and doing business in this state, and every other insurance company, other than life, whose charter may be owned, or a majority of whose stock may be controlled, or whose business shall be carried on in the interest, or for the benefit of any insurance company or association not organized or incorporated under the laws of California, shall annually pay to the insurance commissioner, as taxes, two (2) per cent upon the amount of the gross premiums received upon its business. done in this state, during the year ending on the preceding thirty-first day of December, less return premiums, reinsurance in companies or associations authorized to do business in this state and losses actually paid on its business in this state.

This section shall not be held or construed so as to relieve any company or organization from any tax, fee or other obligation or charge imposed upon it by the provisions of section 622 of this code, but the taxes imposed by said section, and paid to the insurance commissioner by any such company or association under the provisions of said section, shall be deducted from the amount to be paid by such company or association to the insurance commissioner under the provisions of this section.

Sec. 2. This act shall take effect January 1, 1904, and all of the provisions hereof shall be construed as applying to the business done in the year 1903, and each year thereafter. En. Stats. 1903, 359.

Corporation Laws-35

BONDS TO BE FILED.

Sec. 623, Pol. C. The commissioner must require every company, association, or individual, not incorporated under the laws of this state, and proposing to transact insurance business by agent or agents in this state, before commencing such business to file in his office a bond, to be signed by the person or firm, officer or agent, as principal, with two sureties, to be approved by the commissioner, in the penal sum of two thousand dollars for each insurance company, association, firm, or individual for whose account it is proposed to collect premiums of insurance in this state, the conditions of such bonds to be as follows:

1. That the person or firm, agent, or officer named therein, acting on behalf of the company, association, firm, or individual named therein, will pay to the treasurer of the county, or city and county, in which the principal office of the agency is located, such sum per quarter, quarterly in advance, for a license to transact an insurance business, or such other license as may be imposed by law, so long as the agency remains in the hands of the person or firm, officer, or agent named as principal in the bond.

2. That the person or firm, officer, or agent, will pay to the state, all stamp or other duties on the gross amounts insured by them, in the manner and at the time prescribed by law, inclusive of renewals on existing policies.

3. That the person, firm, agent, or corporation named therein, will conform to all the provisions of the revenue and other laws made to govern them. En. March 12, 1872.

Legislative History.

This section is based on section 1 of act to tax foreign insurance companies of 1862, page 243.

SAME.

Sec. 624, Pol. C. Whenever the same person, firm, officer, or agent desires to collect premiums of insurance for more than one company, association, or individual, not incorporated under the laws of this state, the commissioner must require a separate bond, as provided in the preceding section, for each company or association so represented by such person, firm, officer, or agent. En. March 12, 1872.

Legislative History.

This section is based on section 5 of the act to tax foreign insurance companies of 1862, page 245.

Section Cited.

San Francisco v. L. & L. G. Ins. Co., 74 Cal. 122, 5 Am. St. Rep. 425, 15 Pac. 380.

Annotation.

Unconstitutional Condition.-An act requiring the payment of a percentage of the premiums into the public treasury for the support of a firemen's relief fund is an attempt to impose a tax for municipal purposes and is void. The legislature, in attempting to impose a condition upon which foreign corporations shall be permitted to do business in this state, cannot exercise a power denied to it by the state constitution. (San Francisco v. Ins. Co., 74 Cal. 113, 5 Am. St. Rep. 425, 15 Pac. 380. Note citations: 96 Am. Dec. 344; 58 Am. St. Rep. 662.)

TO FURNISH ASSESSOR WITH CERTAIN INFORMATION.

Sec. 625, Pol. C. The commissioner must, before the commencement of each fiscal year as fixed in the revenue laws, furnish the assessor of the county in which the principal office of any person or corporation doing the business of insurance is situated, all the data concerning premiums collected by, and all other necessary information in relation to the business of such person or corporation as will assist the assessor in the performance of his duties. En. March 12, 1872.

SECURITIES.

Sec. 626, Pol. C. The commissioner must require from every person, before and after engaging in the business of insurance, a full compliance with all the provisions of title II, part IV, Division I of the Civil Code applicable thereto; and every person neglecting to comply with such requirements is subject to the fines and penalties therein prescribed. [See post, 5414.] En. March 12, 1872.

Insurance corporations: See sections 414-450, C. C., ante.

STATEMENT TO BE BASED ON GOLD COIN VALUES.

Sec. 627, Pol. C. All statements, estimates, percentages, payments, and calculations required by this chapter to be made,