taxpayers. Articles of association and incorporation must be filed with Secretary of State, and certified copy thereof with Auditor of State. Only citizens and residents and taxpayers for at least three years are eligible to act as director or officer. Company must have at least $100,000 of risks and $3000 of premiums subscribed for.

PRELIMINARY DOCUMENTS-Company must file with the Auditor a certified copy of its charter and a certificate giving the date of its organization and the location of its principal office and a statement showing its condition and business on December 31, preceding. Foreign companies must file certified copy of charter and certificate giving date of organization and location of its principal office; designation of attorney; statement of capital employed in operating its business in the State; statement of assets and liabilities; directors' resolution authorizing service upon any agent or the Secretary of State. See "Deposit." Certificate of compliance with laws of company's home State required annually by March 1. Penalty for doing business without complying with act 313, approved May 13, 1907, a fine of $1000.

PUBLICATION-No requirement. RATING SCHEDULES TO BE FILED-Section 2. "All companies, corporations or associations authorized to transact business of insurance in this State, shall file with the Audtor or Insurance Commissioner a schedule of rates of premiums to be charged and collected therefor, on contracts of insurance of indemnity proposed to be effected by said company, corporation or association, which in all cases shall be a fixed percentage of the amount insured, and such companies, corporations and associations may employ a common expert to inspect individual risks and advise the premiums to be charged in accordance with schedule of rates on file with the Auditor or Insurance Commissioner, and such premiums shall be uniform for all risks rated under the same schedule." RECIPROCAL LAW-None.

REINSURANCE-Reinsurance in unauthorized companies is not prohibited. Authorized companies not allowed to reinsure risks of unauthorized companies. The original insuring company must report all premiums on such business, and pay a five per cent tax thereon. Penalty for violation, $100. See "Taxes."

REINSURANCE RESERVE--The reinsurance fund must be maintained at fifty per cent of all premiums on unexpired fire risks that have less than one year to run, and pro rata of all premiums on unexpired risks having more than one year to run; the entire premiums received on unexpired marine and inland risks. When the reinsurance fund thus calculated is less than forty per cent of all premiums received during the year, then the whole of the premiums received on unexpired risks shall constitute the reinsurance fund. Domestic mutual companies must reserve at least fifty per cent of premiums for payment of losses and benefit of policyholders. RESIDENT AGENTS—Act of May 11, 1905. Sec. 1. "Any fire insurance

*

*

company * authorized to do business in this State is hereby prohibited from authorizing or allowing any person, agent, firm or corporation who is non-resident of the State of Arkansas to issue or cause to be issued its own policy or policies of insurance or reinsurance on property *** located in the State of Arkansas." Sec. 2. "Any person, agent, firm or corporation licensed by the Auditor to act as agent for any fire insurance company, * in the State of Arkansas is hereby prohibited from paying directly or indirectly any commission, brokerage, or other valuable consideration on account of any policy or policies covering any property in the State of Arkansas, to any person, agent, firm or corporation who is a non-resident of this State, or to any person, agent, firm or corporation not duly licensed by the auditor as agent for any fire insurance company. Penalties for violations, by companies, first offense, revocation of license for three to six months; for each subsequent offense, revocation of license for one year; by agents, revocation of licenses for all companies for three to six months for first offense, and for one year for second offense. (No exception of railroad property or property in transit is provided for in the law.) Each member of a fire company who actually solicits or writes insurance is required to hold license. A mutual company organized outside of the State must appoint a resident general agent, and all business transacted in Arkansas shall be transacted through said general agent and agents appointed by and reporting to him. SEMI-ANNUAL STATEMENTS-None required. STANDARD POLICY-None required.

* * * 99

TAXES Act 159, Sec. 1913. "Every fire, tornado or marine insurance company, incorporation or association authorized to do business in this State shall file with the Auditor or Insurance Commissioner at the same time with its annual statements, a sworn statement setting forth the gross amount of premiums received by it from policies covering risks within this State, and upon all property located in this State during the year ending December 31 preceding, without deductions for commissions, returned premiums or considerations paid for reinsurance, or any deductions whatever, and shall also therein set forth in separate item return premiums paid for cancellations and authorized reinsurance, after deducting such return premiums and authorized reinsurance, shall pay into the State Treasury on or before the first day of March, a tax of 12% on such gross receipts, and such tax shall be in lieu of all other taxes, State, county or municipal, on such receipts; nor shall any city, town or municipality impose any license fee or privilege tax upon any company or agent of any company for the privilege of transacting such business of insurance. Provided that any person, firm, corporation, individual or association doing business in this State securing indemnity contracts or policy of insurance from any person, firm, corporation, association or individual not authorized to do business in this State, shall, on or before the first day of March each year, file with the Auditor of State a sworn affidavit of the amount of premium paid to such

unauthorized persons, firms, associations or corporations, and shall pay into the State Treasury a tax of five per centum of the gross premiums paid; and provided, further, that insurance companies organized under the laws of Arkansas shall not be required to pay the above subscribed tax except on that portion of their premiums paid for reinsurance in unauthorized companies." Franchise tax, payable to the Treasurer of State annually, on or before August 10, $100 if capital stock outstanding is less than $500,000, or $200 if capital is $500,000 or more. Mutual company pays $100. TAX STATEMENTS-Must be filed within sixty days after January 1. Franchise tax statements must be filed annually, on or before July 1, with Franchise tax statements must be filed annuall, on or before June 1, with the Arkansas Tax Commission. VALUED POLICY-Law passed 1889, amended 1899, Sec. 1. "A fire insurance policy, in case of a total loss by fire of property insured, shall be held and considered to be a liquidated demand against the company for the full amount for which the company charges and collects premiums; provided, that the provisions of this article shall not apply to personal property."

None.

COUNTY TAXES AND FEES.

MUNICIPAL TAXES AND FEES.

None.

CALIFORNIA.

STATE REQUIREMENTS.

AGENTS DEFINED-No statutory definition.

AGENTS' LICENSES-Sec. 633. "No person shall in this State act as the agent or solicitor of any insurance company doing business in this State until he has produced to the Commissioner, and filed with him, a duplicate power of attorney from the company, or its authorized agent, authorizing him to act as such agent or solicitor. Upon filing such power, the Commissioner shall issue a license to him to act as such agent or solicitor for such company, if such company has received a certificate of authority from such Commissioner to do business in this State. Such license shall continue in force until July 1st after the date thereof, but must be, and shall be, sooner revoked upon application of the company or its authorized agent. Such license may be renewed from time to time, for an additional period of twelve months, on production by the holder to the Commissioner of a certificate from the company that such person's authority as such agent or solicitor continues." Sec. 623. "The Commissioner must require every company, not incorporated under the laws of this State, now transacting or proposing to transact insurance business by agent or agents in this State, before commencing such business to file in his office a bond in favor of the people of the State of California, to be signed by the company, as principal, with two sureties, to be approved by the Commissioner, in the penal sum of $20,000, the condition of such bonds to be as follows: (1) That the company and its agents will pay all State, county and municipal property and license taxes, in the manner and at the time prescribed by law; (2) That the company named therein will conform to all the provisions of the revenue and other laws made to govern them; (3) and that the company will promptly pay all fees, assessments, taxes, penalties, and fines that may be laid upon or against such company." Sec. 624. "Whenever the same company desires to collect premiums of insurance for more than one company, the Commissioner must require a separate bond, * * *, for each company so represented by such company." Every general agent must procure from the Commissioner a certificate of authority. Every company must have a resident general agent. Penalty for acting for unauthorized company, imprisonment not exceeding six months, or fine not exceeding $500, or both. Neither a firm nor a company can be licensed as a solicitor; each person must have a separate license. ANNUAL STATEMENTS-Companies must file statements of condition and affairs, including California business in the preceding year, on or before March 1 of each year. Penalty for willful failure to file statements pre

scribed by a law, a fine of $100, and $200 for each month or fraction thereof company continues to do business without filing same. ANTI-COINSURANCE-No provision.

ANTI-COMPACT—It has not yet been determined whether or not the "Cartwright bill," which became a law in 1907, refers to insurance companies. ANTI-DISCRIMINATION-No provision.

ATTORNEY-A resident of the State must be appointed to accept service of legal process; in the absence of such attorney the Insurance Commissioner must be authorized to accept service.

CANCELLATION OF POLICY-Five days' written notice to insured and

to mortgagee or other person to whom, with written consent of company, the policy is made payable, is required by law.

CAPITAL REQUIRED--Stock companies must possess an unimpaired capital of not less than $200,000. Companies transacting both fire and marine insurance must have at least $400,000 capital. Fire or fire-marine company transacting "team and vehicle insurance" must have $50,000 additional capital. A mutual or stock-mutual company of another State or country, having not less than $100,000 capital, must have in lieu of such capital at least $200,000 of available cash assets above all liabilities.

COMMISSIONS TO NON-RESIDENTS—No provision.

DEPOSIT-None required (except by the application of retaliatory law).

Companies of other countries must have an amount equal to the amount of capital stock or cash assets required on deposit with the Insurance Commissioner of California or a State official of some other State. "Such deposit must be of securities which the law of California permits for the investment of the assets of such California insurance companies." (See "Investments Prescribed.") (See "Agents' Licenses.")

DOMESTIC COMPANIES-Must have $200,000 subscribed capital, not less than twenty-five per cent of which must be paid in before commencing business, and the remainder within one year. Must file statement within thirty days after payment of twenty-five per cent, and within thirty days after the payment of the last instalment on the stock.

EXAMINATIONS-Sec. 597. "The Commissioner, whenever he deems necessary, or whenever he is requested by verified petition, signed by 25 persons interested, either as stockholders, policyholders, or creditors of any company engaged in insurance business in this State, showing that such company is insolvent under the laws of this State, must make an examination of the business and affairs relating to the insurance husiness of such company, and must make such an examination whenever any company is organized to do insurance business in this State, and before issuing a certificate of authority other than renewals to such company, and may make such examination whenever any company not organized under the laws of this State applies for a certificate to do insurance business in this State, and before issuing a certificate of authority to such company; and for such