CHAPTER 23. AN ACT to regulate the admission of Foreign Surety Com- Be it enacted by the Legislature of the State of business. SECTION 1. That any surety company, incor- May transact porated and organized under the laws of any state of the United States other than the state of Nebraska, for the purpose of transacting business as surety on obligations of persons or corporations, may transact such business in this state upon complying with the provisions of this act, and not otherwise. pany must SEC. 2. No surety company not incorporat- Foreign comed under the authority of this state, shall di- have attorney. rectly or indirectly take risks or transact business in this state until it shall have first appointed, in writing, the auditor of public accounts of this state to be the true and lawful attorney of such company in and for this state, upon whom all lawful process in any action or proceeding against the company may be served with the same effect as if the company existed in this state. Said power of attorney shall stipulate and agree on the part of the company that any lawful process against the company which is served on said attorney shall be of the same legal force and validity as if served on the company, and that the authority shall continue in force so long as any liability remains outstanding against the company in this state. Service of process. Capital necessary before doing business. A certificate of such appointment, duly certified and authenticated, shall be filed in the office of the said auditor, and copies certified by him shall be received in evidence in all the courts of this state. Services upon such attorney shall be deemed sufficient service upon the company. SEC. 3. Whenever lawful process against a surety company shall be served upon the auditor of public accounts he shall forthwith forward a copy of the process served on him, by mail, postpaid, and directed to the secretary of the company. For each copy of process the auditor shall collect the sum of two dollars, which shall be paid by the plaintiff at the time of such service, the same to be recovered by him as part of the taxable costs, if he prevails in the suit. SEC. 4. No person shall act within this state as agent or otherwise in procuring or securing applications for suretyship upon the bond of any person or corporation, or aid in transacting the business of such suretyship for any company incorporated or organized under the laws of any other state, unless such company is possessed of two hundred and fifty thousand dollars capital, and unless such capital to the extent of one hundred thousand dollars is invested in stocks created by the laws of the United States or by or under the laws of the state in which said company is located, or in other safe stocks or securities, the value of which, at the time of such deposit, shall be at or above par, which invest ments are deposited with the insurance commissioner, auditor, comptroller, or chief financial officer of the state under whose laws such company is incorporated, and the treasurer of this state is furnished with the certificate of such insurance commissioner, auditor, comptroller, or chief financial officer aforesaid, under his hand and official seal, that he, as such insurance commissioner, auditor, comptroller, or chief financial officer of such state, holds in trust and on deposit for the benefit of all obligees of such company, the surety before mentioned; which certificates shall embrace the items of security so held, and shall state that he is satisfied that such securities are worth one hundred thousand dollars. acting agent. SEC. 5. Every person who shall so far rep- When deemed resent any surety company established in any other state as to receive or transmit applications for suretyship, or to receive for delivery bonds founded on applications forwarded from this state, or otherwise to procure suretyship to be affected by such company upon the bonds of persons or corporations in this state, shall be deemed as acting as agent for said company, and shall be subject to the restrictions and liable to the penalties herein made applicable to agents of such companies. auditor copy of SEC. 6. Every such agent before transacting Deposit with any business as aforesaid, shall deposit with charter. the auditor of public accounts a copy of the charter of the company or corporation for which he is agent as aforesaid, unless a copy thereof has already been deposited with such auditor. Deposit statement of com. pany. Annual statements deposited and pub. lished. SEC. 7. Every such agent shall also, before transacting any business as aforesaid, deposit with the said auditor a statement, signed and sworn to by the president and secretary of the company for which he acts, stating the amount of its capital and the manner of its investments, designating the amount invested in mortgages, in public securities, in the stock of incorporated companies, stating what companies, and also the amount invested in other securities, particularizing each item of investment, the amount of existing bonds upon which company is surety, stating what portion thereof is secured by the deposit with such company of collateral security, the amount of premium thereon, and the amount of liabilities, specifying therein the amount of outstanding claims adjusted or unadjusted, due or not due; Provided, however, That not more than one such statement need be filed on behalf of such company. SEC. 8. Every such agent shall, in the month of January, annually, also deposit with the said auditor a similar statement of the capital of the company which he represents, and the investments and risks as aforesaid, to be made up to the thirty-first day of December next preceding, signed and sworn to as above directed, and the auditor shall annually in the month of February publish an abstract of the statement filed in his office as required by section nine of this act and by this section, and the expense of publishing said abstract shall be paid by such companies; Provided, however, 'That not more than one such statement need be filed by such company in any one year. stock. SEC. 9. No person shall act as agent as Net capital aforesaid for any such surety company in this state unless the capital stock of the company which he represents amounts to the sum of two hundred and fifty thousand dollars actually paid in money and invested exclusively of any obligations of the stockholders of any description. agent of Penalty for company in violation with all acting as agent SEC. 10. No person shall act as any such surety company until such and such agent shall have complied the requirements of the laws of this state relating to such companies and their agents, and every person acting without such compliance shall be fined one thousand dollars. of law. duties of. SEC. 11. The auditor of public accounts Auditor, shall annually examine the statements and returns required to be made by the companies and agents as aforesaid, and' if in his opinion any return shall be obscure, defective, or unsatisfactory, he shall immediately require answers under oath from the agent by whom such obscure, defective, or unsatisfactory return shall have been made, to such interrogatories as he may deem necessary or proper to be answered in order to explain such return, and exhibit a full and accurate view of the business and resources of the company represented by such agent. SEC. 12. Every agent who shall refuse or Agent refusing neglect to answer such interrogatories for the space of thirty days, and continue to act as agent as aforesaid, shall be liable to the penalty prescribed in section ten of this act. to answer. |