88 11-13 General Provisions. Art. 1 § 11. Examination by superintendent. If the declaration and charter specified in the preceding section shall be approved by the attorney-general, the superintendent shall thereupon cause an examination to be made by himself, or by one or more competent and disinterested persons specially appointed by him for that purpose, into the affairs of the corporation or proposed corporation. If such persons, after examination made, shall certify under oath, if it be a stock corporation, that the amount of capital required by law has been paid in and is possessed by it in cash, or is invested in the manner required by law; or if a mutual or co-operative corporation, that it has received and is in actual possession of the capital, premiums or engagements of insurance to the full extent required by law, the superintendent shall file such certificate in his department. Every such insurance corporation shall also deposit with the superintendent of insurance, before receiving authority to transact business in this state, such sums of money or securities as may be required by law. Formerly L. 1892, ch. 690, § 11, as am'd by L. 1893, ch. 725, § 1, and L. 1906, ch. 326, § 3. § 12. Minimum capital stock. No domestic fire or marine stock insurance corporation shall be hereafter organized with a smaller capital stock than two hundred thousand dollars fully paid in in cash, but nothing in this section contained shall be understood to relate to the class of corporations provided for in article nine of this chapter. No domestic life, health or casualty stock insurance corporation shall be hereafter organized with a smaller capital stock than one hundred thousand dollars fully paid in in cash, with an additional capital stock of fifty thousand dollars fully paid in in cash for every kind of insurance more than one which it is authorized to do by section seventy of this chapter. Formerly L. 1892, ch. 690, § 12, with L. 1899, ch. 85, § 1, incorporated. § 13. Deposit of securities. Every deposit made with the superintendent of insurance by any domestic or foreign insurance corporation shall be in the stocks or bonds of the United States or of this state, not estimated above their current market value, or in the bonds of a county or incorporated city in this state, authorized to be issued by the legislature, not estimated above their par value nor their current market value, or in bonds and mortgages on improved, unincumbered real property in this state, worth fifty per centum more than the amount loaned thereon. If the value of such real property consists in part of buildings thereon, such buildings shall be kept insured for the benefit of the Art. 1 General Provisions. §§ 14, 15 mortgagee in such sum as the superintendent of insurance shall approve. No one bond or mortgage so deposited shall be for a less sum than five thousand dollars. The president or agent of every corporation depositing any bond or mortgage shall annex to the mortgage his affidavit that it was made and taken in good faith for money loaned by the corporation which he represents to the amount named therein, and that no part thereof has been since paid or returned, and that he has reason to believe and does believe that the premises thereby mortgaged are worth at least fifty per centum more than the amount of the mortgage thereon. The superintendent shall prescribe such regulations for ascertaining the title and value of the real property specified in any such mortgage as he may deem necessary. Such deposit may be made by an insurance corporation incorporated under the laws of a state of the United States, or of a country outside of the United States, authorized to do business in this state, in the stocks or bonds of such state or country, or of any province or city therein, approved by the superintendent of insurance, provided that similar domestic insurance corporations doing business in such state or country are authorized by the laws thereof to deposit or hold as security therein for the benefit or security of its policyholders and creditors in such state the stocks or bonds of this state, or in such country outside of the United States, the stocks or bonds of this state or of the United States. Formerly L. 1892, ch. 690, § 13, as am'd by L. 1893, ch. 725, § 1. 14. Exchange of securities; interest. The stocks and securities deposited with the superintendent of insurance, pursuant to the provisions of this chapter, or heretofore deposited with him, may be exchanged from time to time for other securities. receivable as provided in this chapter, and so long as the corporation depositing the securities shall continue solvent and comply with the laws of the state it shall be permitted by the superintendent to collect the interest or dividends on such deposits. Formerly L. 1892, ch. 690, § 14. § 15. State treasurer to countersign transfers of securities. No transfer of securities held by the superintendent of insurance shall be valid unless countersigned by the treasurer of the state or his deputy, and upon notice of at least five days to the corporation depositing such securities. The treasurer shall keep in his office or in the office of the superintendent a book in which shall be entered the name of the corporation from whose account such transfer of securities is made by the superintendent, the name of the transferee unless made in blank, the par value of 16 General Provisions. Art. 1' the securities transferred, the amount for which every mortgage transferred is held by the superintendent; and within five days after countersigning and entering the same, the treasurer shall advise by mail the corporation from whose account such transfer is made, of the kind of security and the amount of the same thus transferred. The treasurer shall have access at all times during office hours to the books of the superintendent of insurance for the purpose of ascertaining the correctness of any transfer or assignment presented to him to countersign, and the superintendent shall have access during office hours to the books herein mentioned kept by the treasurer to ascertain the correctness of the entries upon the same. The treasurer shall state in his annual report to the legislature the total amount of such transfer or assignment countersigned by him. Formerly L. 1892, ch. 690, § 15, as am'd by L. 1906, ch. 326, § 4. § 16. Investment of capital and surplus. The cash capital of every domestic insurance corporation required to have a capital, to the extent of the minimum capital required by law, shall be invested and kept invested in the kinds of securities in which deposits with the superintendent of insurance are required by this chapter to be made. The residue of the capital and the surplus money and funds of every domestic insurance corporation over and above its capital, and the deposit that it may be required to make with the superintendent, may be invested in or loaned on the pledge of any of the securities in which deposits are required to be invested or in the public stocks or bonds of any one of the United States, or except as in this chapter otherwise provided, in the stocks, bonds or other evidence of indebtedness of any solvent institution incorporated under the laws of the United States or of any any state thereof, or in such real estate as it is authorized by this chapter to hold; but no such funds shall be invested in or loaned on its own stock or the stock of any other insurance corporation carrying on the same kind of insurance business, except that any such company engaged solely in business as a surety company under subdivision four of section seventy of this chapter may invest such funds in, or loan such funds on, the stock of any other corporation carrying on solely the same kind of business outside of, but not within, the United States. Any domestic insurance corporation may, by the direction and consent of two-thirds of its board of directors, managers or finance committee, invest, by loan or otherwise, any such surplus moneys or funds in the bonds issued by any city, county, town, village or school district of this state, pursuant to any law of 3 Art. 1 * this state. Any corporation organized under the ninth subdivision * of section seventy of this chapter, for guaranteeing the validity and legality of bonds issued by any state, or by any city, county, town, village, school district, municipality, or other civil division of any state, may invest by loan or otherwise any of such surplus moneys or funds in the bonds which they are authorized to guarantee. Every such domestic corporation doing business in other states of the United States or in foreign countries may invest the funds required to meet its obligation incurred in such other states or foreign countries, and in conformity to the laws thereof, in the same kind of securities in such other states or foreign countries that such corporation is by law allowed to invest in in this state. Any life insurance company may lend a sum not exceeding the lawful reserve which it holds upon any policy, on the pledge to it of such policy and its accumulations as collateral security. But nothing in this section shall be held to authorize one insurance corporation to obtain, by purchase or otherwise, the control of any other insurance corporation. Am'd by L. 1909, ch. 240, § 47. Formerly L. 1892, ch. 690, § 16, as am'd by L. 1893, ch. 112, § 1; L. 1895, ch. 917, § 1; L. 1897, ch. 218, § 1; L. 1906, ch. 326, § 5, and L. 1907, ch. 239, § 1. § 17. Securities must be interest or dividendpaying. The superintendent of insurance shall not credit any insurance corporation transacting business in this state with any security as a part of its capital or as an investment of any part of its capital, or receive any security as a deposit, unless the security is interest or income-bearing or dividend-paying. Formerly L. 1892, ch. 690, § 17. § 18. Stocks in other corporations. If any domestic insurance corporation shall have invested any of its funds in, or loaned any of its funds upon, the stock, bonds or other evidences of debt of other corporations pursuant to the laws of this state, and the superintendent shall have reason to believe that such stock, bonds or other evidences of debt are below par or are not yielding an income, he may direct it to report to him under oath the amount thereof and its market value. No such stock shall be valued as an asset of the corporation above its market value. Formerly L. 1892, ch. 690, § 18. § 19. Lien on stock and profits. Any domestic fire or marine insurance corporation may, in its by-laws, prescribe that it ** Matter included between ** is repeated in original. See page 1782. $ 20 General Provisions. Art. I shall have a lien upon the stock or certificates of profits of any stockholder or member for any debt thereafter becoming due to such corporation for premiums from him, but a copy of such by-laws shall be indorsed upon the certificate of stock or profits, and the lien may be waived by the written consent of the president of the corporation upon any transfer of such stock or certificate. Formerly L. 1892, ch. 690, § 19. § 20. Restrictions as to real property. Every insurance corporation transacting business in this state may purchase, hold and convey real property only for the following purposes and in the following manner: 1. The building in which it has its principal office and the land upon which it stands. 2. Such as shall be requisite for its convenient accommodation in the transaction of its business. * * 3. Such as shall have been acquired for the accommodation of its business. 4. Such as shall have been mortgaged to it in good faith by way of security for loans previously contracted or for moneys due. 5. Such as shall have been conveyed to it in satisfaction of debts previously contracted in the course of its dealings. 6. Such as shall have been purchased at sales upon judgments, decrees or mortgages obtained or made for such debts. 7. Such as shall have been acquired under sections thirteen and fourteen of the general corporation law. All such real property specified in subdivisions three, four, five, six and seven of this section, as shall not be necessary for its accommodation in the convenient transaction of its business, shall be sold and disposed of within five years after it shall have acquired title to the same, or within five years after the same shall have ceased to be necessary for the accommodation of its business, and it shall not hold such property for a longer period unless it shall procure a certificate from the superintendent of insurance that its interests will suffer materially by the forced sale thereof, in which event the time for the same may be extended to such time as the superintendent shall direct in such certificate. If it is a domestic marine insurance corporation, it may also acquire and hold such real property within the state or upon or in its waters as is or may be adapted to or available for use in protecting, storing and caring for wrecked vessels or cargoes, or in protecting, storing and caring for such vessels and appliances ** Matter included between ** is repeated in original. See page 1781. |