transact business in this state may be placed upon the terms and conditions in this section hereafter set forth.

Such certificate of authority shall expire on the first day of July after it is issued unless sooner revoked, and must be renewed annually.

No certificate of authority shall be granted or renewed to any company in arrears to the state, or to any county or city of the state, for fees, licenses, taxes, assessments, fines or penalties accrued upon business previously transacted in the state nor while the company is otherwise in default for failure to comply with any of the laws of this state regarding the government and control by the state, of such company and all such authorizations and certificates of authority heretofore granted shall expire on July 1st, 1907.

[License to procure insurance in companies not authorized to do business.] The insurance commissioner may issue a license to any citizen of this state, subject to revocation at any time, permitting the person named therein to procure policies of insurance on risks located in this state for companies not authorized to transact business in this state, and for such license the insurance commissioner shall collect a fee of fifty dollars for each such license and renewal thereof and each such license and renewal shall expire on the first day of July unless sooner revoked.

[Affidavit required.] Before the person named in such license shall procure any insurance in such company he shall in every case execute and file with the insurance commissioner an affidavit that he is unable to procure, for a specified person, firm or corporation, in a majority of the companies authorized to do business in this state the amount of insurance necessary.

[Account of business.] Every person so licensed shall keep a separate account of the business done under said license, open at all times to the inspection of the insurance commissioner, and shall file a certified copy thereof forthwith with the insurance commissioner, showing the exact amount and character of such insurance placed for any person, firm or corporation, the gross premiums charged thereon, the companies in which the same is placed, the dates of the policies and the terms thereof, the location of the insured property and also a report in the same detail of all such policies canceled and the gross return thereon.

[Bond of licensee.] Before receiving such license the person licensed shall execute and deliver to the insurance commissioner a bond to the people of the state of California in the penal sum of twenty thousand dollars, with such sureties as the commissioner shall approve, conditioned that the licensee will faithfully comply with all the requirements of this section, and will file with the insurance commissioner on or before the first day of March of each year, a sworn statement of the gross premiums charged for insurance procured or placed, and the gross return premiums on such insurance canceled under such license during the year ending on the thirty-first day of December last preceding, and will pay to the insurance commissioner of the state of California, for the use and benefit of said state, an amount equal to four per cent of such gross premiums less such return premiums so reported, and in default of the payment of any sum imposed by this section, the said insurance commissioner may sue for same in any court of record in this state.

[Examination of policies issued by licensee.] Any person, firm, company or corporation for whom such insurance as herein specified shall have been

effected, whenever required by the insurance commissioner so to do, shall produce for examination by him the policy or policies issued for such insurance, and disclose to him the true amount of the gross premiums agreed to be paid therefor, and upon refusal so to do shall forfeit to the state of California for each such refusal the sum of two hundred dollars to be recovered in a civil action.

[Policies void, when.] All policies and insurance contracts issued without full compliance, by all parties concerned, with the laws of this state are null and void.

History: Former section repealed and present substituted therefor
March 8, 1907, Stats. and Amdts. 1907, p. 146. In effect immediately.

§ 596a. ATTORNEY-GENERAL TO EXAMINE DOCUMENTS. Before the insurance commissioner issues any certificate of authority or any other certificate or gives any permission or authority of any kind, based upon any written instrument or document or certified copy thereof, required by the statutes of the state of California, the commissioner shall submit such instrument, document or certified copy to the attorney-general of the state of California, who shall examine the same and return it to the commissioner with his certificate or opinion as to whether such instrument, document or certified copy is in accordance with the requirements of law, and such certificate or opinion of the attorney-general shall govern and control the commissioner, subject only to review by a court of competent jurisdiction, provided that neither the authority to nor bond of an agent or solicitor, nor the annual statements as to the condition and affairs need, but may, be so submitted (with the same effect) by the commissioner to the attorney-general.

History: Enacted March 8, 1907, Stats. and Amdts. 1907, p. 147.
In effect immediately.

$ 597. EXAMINATION OF AFFAIRS OF COMPANIES, WHEN. The commissioner, whenever he deems necessary, or whenever he is requested by verified petition, signed by twenty-five persons interested, either as stockholders, policy-holders, 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 business 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 purposes shall have free access to all the books and papers of such company, and must thoroughly inspect and examine all its affairs, and ascertain its condition and ability to fulfil its engagements, and that it has complied with all the provisions of law applicable to its insurance transactions. [Inspection of books.] Such company must open its books and papers for the inspection of the commissioner, and otherwise facilitate such examination; and the commissioner may administer oaths and examine under oath any person relative to the business of such company; and if he finds the books to have been carelessly or improperly kept or posted he must employ sworn

experts to re-write, post and balance the same at the expense of such company. Such examination must be conducted in the county where such company has its principal office, and must be private, unless the commissioner deems it necessary to publish the result of such investigation, in which case he may publish the same in two of the public newspapers of this state, one of which must be published in the city of San Francisco. Whenever the commissioner shall deem such examination necessary, the same must be at the expense of the company, such expense to be paid in advance, and if any such company refuses to pay such expenses in advance the insurance commissioner may refuse to issue any such certificate of authority and must revoke any existing certificate of authority authorizing such company to do business.

History: Former section repealed and present enacted in place thereof
March 8, 1907, Stats. and Amdts. 1907, p. 147. In effect immediately.

$597a. LIST OF POLICIES OF INSURANCE ISSUED BY INSURANCE COMPANIES TO BE FURNISHED THE INSURANCE COMMISSIONER. The commissioner has power to, and whenever he deems necessary may, in writing, require any company engaged in insurance business in the state of California, to furnish the commissioner, as of a date, past or present, to be designated by the commissioner, a full and complete list of all its policies of insurance on property or risks located within that portion of the state of California included within the territory described by the commissioner, and which policies had not by the terms thereof expired on the date designated by the commissioner.

Such list must show the number of the policy, the name in which the policy was issued, the amount for which it was issued, the nature and description of the property on which the policy was written or the nature of the risk assumed by the company, the location of the property and the residence of the insured, and the form or class of such policy as designated on the policy by the company. The commissioner shall require such

[List to be accompanied by forms of policies.] List to be accompanied by the several forms of policies so designated and classified by the company, and the forms of riders, if any, attached to each particular form of policy.

[Penalty for failure to furnish list and forms.] Any company which fails or neglects to furnish such lists and forms for the period of ten days from the date of the commissioner's request, shall forfeit its right to do business in this state, and the commissioner shall thereupon revoke, in the manner provided in section six hundred of this code, the certificate previously granted such company to do business in this state, and said company shall also be liable to a penalty in the sum of two thousand dollars, for the payment of which penalty suits may be instituted by the commissioner in the name of the people of the state of California, in a court of competent jurisdiction, to recover such penalty or accumulated penalties.

[Liability for penalty upon bond filed by company.] Said company shall be liable for said penalty or penalties upon the bond filed by said company, pursuant to section six hundred and twenty-three of the Political Code.

History: Exacted June 3, 1906, Stats, and Amdts. 1906, pp. 6, 7.
In effect immediately.

Note: This enactment probably falls by the repeal of the article to
which it was added by the extraordinary session of the legislature of 1906.

§ 598. POLICY-HOLDERS MAY PROCURE INFORMATION ABOUT POLICIES. Any person interested in, as owner, assignee, pledgee or payee, of any policy of insurance and desiring any information about such policy, may file with the insurance commissioner an affidavit showing that he is entitled to the benefits of the provisions of this section and apply to the insurance commissioner for his certificate of the facts or information desired. If the records of his office show the facts or information desired, the insurance commissioner shall prepare his certificate reciting such facts or information. If his records. do not show the facts or information desired the insurance commissioner may deliver an order to the agent of the company, designated under section six hundred and sixteen of the Political Code, directing such company to state such information or facts in an affidavit and deliver such affidavit to him. [Company must make statement.] In such affidavit the company must make a full, true and correct statement of all the said facts and information in the possession of said company, whether such information be contained in the books, records, or papers in this state or in any other state or country. If such company neglects or refuses to make and deliver such affidavit to the insurance commissioner within ninety days from the date of the delivery of the said order by the commissioner to the said agent as herein provided, the commissioner must revoke the certificate of authority authorizing the company to do business in this state. Immediately after receiving any affidavit from any insurance company pursuant to the provisions of this section the commissioner must certify such affidavit to the person so applying for the information or facts. Such affidavit so certified by the insurance commissioner shall be delivered to the applicant by delivering it to him personally or by depositing the same in the United States post-office and prepaying the postage thereon.

[Lost policy, stay of rights.] If a loss has been sustained under any policy of insurance and such policy has been lost or destroyed all rights of every kind and nature and the time for the presentation of notice of loss and the time for the presentation of proof of loss are stayed from the date such interested person delivers to the commissioner the affidavit herein provided for and until five days after the date of the delivery by the insurance commissioner to such interested person of any affidavit furnished by any insurance company pursuant to the provisions of this section.

History: Former section repealed and present enacted in place thereof
March 8, 1907, Stats. and Amdts. 1907, p. 148. In effect immediately.

§ 599. MAY ISSUE SUBPOENAS. The commissioner may issue subpœnas for witnesses to attend and testify before him on any subject touching insurance business, or in aid of his duties, which may be served, obeyed, and enforced as provided in the Code of Civil Procedure for civil cases, and the commissioner may issue attachments and impose the same penalty which a court might impose for disobedience; and, in addition, the defaulting witness may be punished as provided in the Penal Code.

History: Former section repealed and present enacted in place thereof
March 8, 1907, Stats. and Amdts. 1907, p. 149. In effect immediately.

§ 600. RECORDS OF COMMISSIONER. The commissioner must keep and preserve in a permanent form a full record of his proceedings, including a concise statement of the condition of each company visited or examined by him. History: Former section repealed and present enacted March 8, 1907, Stats. and Amdts. 1907, p. 149. In effect immediately.

If

$ 600a. RESTORATION OF AUTHORITY AFTER REVOCATION. any insurance company (whose certificate of authority has been revoked by the insurance commissioner on the ground that such company is insolvent) within ninety days after the receipt of the notice of revocation, shall repair its capital to such an extent that such company is solvent within the provisions of section six hundred and two of the Political Code, then upon such fact being made to appear to the insurance commissioner, he may issue a new certificate of authority in the same manner and to the same effect as an original certificate of authority.

History: Enacted March 8, 1907, Stats. and Amdts. 1907, p. 149.
In effect immediately.

$ 601. EMPLOYMENT OF ACTUARY. The commissioner may employ an actuary to make the valuation of life policies [,] at a compensation of not exceeding one cent for each thousand dollars of insurance, to be paid by the company for which the valuation is made.

History: Former section repealed and present enacted March 8, 1907, Stats. and Amdts. 1907, p. 149, a re-enactment of former § 604. In effect immediately.

§ 602. WHAT CONSTITUTES INSOLVENCY. Whenever provisions for the liabilities of any company engaged in the business of fire, marine, or inland navigation insurance in this state, for losses reported, expenses, taxes and reinsurance of all outstanding risks, estimated at fifty per cent of the premiums received and receivable on all fire risks and marine time risks, at the full premiums received and receivable on all other marine risks, would so far impair its capital paid in as to reduce the same below two hundred thousand dollars, or below seventy-five per cent of said capital paid in, such company is insolvent; and in case of a company engaged in such insurance in this state, on the mutual plan, if the available cash assets of such company shall not exceed its liabilities, as hereinbefore enumerated, in the full sum of two hundred thousand dollars, such company is insolvent; and wherever provision for the liabilities of any company engaged in the business of insuring any one against loss or damage resulting from accident to or injury suffered by an employee or other person for which the person insured may be liable, for losses reported, expenses, taxes, and reinsurance of all outstanding risks estimated as provided in section six hundred and twelve a of the Political Code would so far impair its capital paid in as to reduce the same below one hundred thousand dollars, or below seventy-five per cent of said capital paid in, such company is insolvent; and whenever provision for the liabilities of any company engaged in any kind of insurance business in this state, other than life, liability, and insurance of titles to real estate, provided for in section four hundred and twenty of the Civil Code of this state, for losses reported, expenses, taxes, and reinsurance of all outstanding risks, estimated at such rates as are accepted by the insurance authorities of the state of New York, would so far impair its