§ 632. The Commissioner must execute an official bond in the sum of ten thousand dollars.

§ 633. No person shall in this State act as the agent or solicitor of any life 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 twelve months from the date thereof, but may 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. For each such license, or renewal thereof, the Commissioner shall receive the sum of one dollar. The Commissioner shall keep an alphabetical list of the names of the persons to whom such licenses shall be issued, with the date of the license and renewal, and the name of the company for whom such person is working. If any person shall, under a false or fictitious name, procure, or attempt to procure, a license to act as agent or solicitor of any life insurance company, he shall be guilty of a misdemeanor. Every person who, in this State, procures, or agrees to procure, any insurance for a resident of this State from any insurance company not incorporated under the laws of this State, unless such company, or its agent, has filed the bond required by the laws of this State relating to insurance, and obtained from the Commissioner a certificate of authority to do business, and every person who solicits or procures any life insurance, without having been duly licensed so to do by the Commissioner, shall be guilty of a misdemeanor, and upon conviction thereof shall be punished accordingly. The Insurance Commissioner must require as a condition precedent to the transaction of life insurance business in this State, that every life insurance corporation or company created by the laws of any other State, or of any foreign country, must file in his office the name of an agent, and his place of residence in this State, on whom summons and other process may be served

in all actions or other legal proceedings against such corporation or company. All process so served gives jurisdiction over such corporation or company. The agent so appointed must be the principal agent of such corporation or company in this State. Any such foreign corporation or company shall, as a further condition precedent to the transaction of insurance business in this State, and in consideration of the privilege to transact such insurance business in this State, make and file with the Insurance Commissioner an agreement or stipulation, executed by the proper authorities of such corporation or company, in form and substance as follows: The (giving name of corporation or company) does hereby stipulate and agree that in consideration of the permission granted by the State of California to it to transact insurance business in this State, that if at any time such corporation or company shall, under the existing provisions of law in this State in relation to insurance companies, be without an agent in this State on whom summons or other legal process may be served, service of such summons or other legal process may be made upon the Insurance Commissioner, such service upon the Commissioner to have the same force and effect as if made upon the corporation or company. Whenever such service of summons or other legal process shall be made upon the Insurance Commissioner, he must, within ten days thereafter, transmit by mail, by registered letter, a copy of such summons or other legal process to the corporation, addressed to the president or secretary thereof, at its home or principal office; such copy must be certified by the Commissioner, under his hand and official seal, and the sending of such copy by the said Commissioner shall be a necessary part of the service of summons or other legal process. [Amendment approved March 9,

1893.]

123 Cal. 111.

§ 634. It shall be lawful for any company or corporation, transacting the business of life insurance in this State, to register with the Insurance Commissioner, such of its policies as may be agreed upon by the company and the insured; such registration to consist in a written or printed list of such policies filed with the Commissioner, showing the name and age of the insured, number and date of the policy and the kind and amount of insurance in each case. Such list must be filed with

the Commissioner within thirty days after the issuance of the first registered policy, and must contain all such policies issued up to date of filing. After that date, the company must, within three days after the first day of each calendar month, file a statement embracing all its registered policies issued since the filing of its last preceding list. Upon filing such lists of policies, from time to time, the company must deposit with the Commissioner, as a special deposit for the benefit of such registered policies, securities of the denominations stated in section four hundred twenty-one of the Civil Code as permissible for the investment of the capital and accumulations of insurance companies. Such deposits must be in an amount equal to the full net value of all policies registered up to the time of making the deposit, and must, at all times, be equal to such net value of all registered policies. Upon receipt of such securities the Commissioner must immediately deposit them in the State treasury, in accordance with the provisions of section six hundred and eighteen of the Political Code, where they must remain as a special security for the benefit of such registered policies. Such company may, at any time, withdraw any excess of securities above the net present value hereinbefore specified, upon satisfying said Commissioner by written proof that such excess exists, and shall be allowed to receive the interest on all securities deposited and to exchange such securities by substituting other securities of the character in which, by the laws of this State, it may invest its funds. [Amendment approved March 18, 1905; in effect in sixty days.]

128 Cal. 537.

COUNTY FIRE INSURANCE COMPANIES.

An Act to provide for the organization and management of county fire insurance companies.

[Approved April 1, 1897. As amended, approved March 23, 1907.] The people of the State of California, represented in Senate and Assembly, do enact as follows:

SECTION 1. Any number of persons, not less than twentyfive, residing in any county in this State, owning insurable property aggregating not less than fifty thousand dollars in value, which they desire to have insured, may incorporate for

the purpose of mutual insurance against loss or damage by fire.

SEC. 2. Such persons shall file with the Insurance Commissioner a declaration of their intention to incorporate for the purposes expressed in section one of this Act, which declaration shall be signed by all of the incorporators, and shall contain a copy of the articles of incorporation proposed to be adopted. The Insurance Commissioner shall examine the proposed articles of incorporation, and, if they conform to this Act, he shall deliver to such persons a certificate permitting them to incorporate as such insurance company. Such certificate shall be directed to the Clerk of the county in which such corporation is proposed to be organized, and shall contain a copy of the proposed articles of incorporation. Upon filing with the Secretary of State the certified copies of the duly executed articles of incorporation, as required by section two hundred and ninety of the Civil Code of the State of California, and of the certificate above provided for, the Secretary of State shall thereupon issue a certificate of incorporation to such county insurance company, and, upon organizing under such articles of incorporation, such county fire insurance company may carry on a fire insurance business as hereinafter provided. The articles of incorporation and the charter or certificate obtained by any county fire insurance company operating under the provisions of this Act shall be subject to the control and modification by the Legislature of the State of California. The by-laws and all amendments thereto shall be filed with the Insurance Commissioner within sixty (60) days after their adoption.

SEC. 3. The number of directors shall not be less than seven (7), nor more than eleven (11), a majority of whom shall constitute a quorum to do business. These directors shall be elected from the members of the association by ballot, and shall hold office for one year, or until their successors are elected and qualified. The annual meeting of the members of the company shall be on the second Monday in January of each year. In the election of the first board of directors each member shall be entitled to one vote. At every subsequent election, every person insured shall be entitled to as many votes as there are directors to be elected, and an equal additional number for every risk or risks he holds in the company, and he may cast the same in person or by proxy, distributing

them among the directors to be elected, or among a less number of directors, or cumulating them upon one candidate, as he shall see fit.

SEC. 4. The directors shall elect, from their own number, a president and a vice-president, and shall also elect a treasurer and a secretary, who may or may not be members of the company. All of such officers hold their office for one year from the date of their election, and until their successors are elected and qualified.

SEC. 5. The treasurer and secretary shall give bonds to the company for the faithful performance of their duties, in such amounts as shall be prescribed by the board of directors.

SEC. 6: Such corporation and its directors shall possess the usual powers, and be subject to the usual duties of corporations and directors thereof, and may make such by-laws, not inconsistent with the Constitution and the laws of this State, as may be deemed necessary for the management of its affairs, in accordance with the provisions of this Act. Also to prescribe the duties of its officers and to fix their compensation, and to alter and amend its by-laws, when necessary.

SEC. 7. Any person owning property in the county for which any such company is formed or any person owning property in any county adjoining the county wherein such company is formed as hereinafter provided may become a member of such company by insuring therein, and shall be entitled to all the rights and privileges appertaining thereto; and no person not residing in the county in which the company is formed shall become a director of such company. [Amendment approved March 23, 1907; in effect in sixty days.]

SEC. 8. Such company may issue policies only on detached dwellings, school houses, churches, barns, (except livery barn and hotel barns), and other farm buildings, and such property as may be contained therein; also, other property on the premises owned by the insured; hay and grain in stack or in the field, and live stock on the premises of the insured, anywhere in the county, for any time not exceeding five years, and not to extend beyond the time limited for the existence of the charter, and for an amount not to exceed four thousand five hundred dollars on any one risk; provided, that no company which has been organized more than six months shall write insurance subject to one fire exceeding three per cent of the amount at risk upon the books of such company. All persons