insurance commissioner as provided in this section, or after such license granted to him or it has been revoked, shall be guilty of a misdemeanor, but the policy issued on an application thus procured, shall bind the insurance company, if otherwise valid.

Title insurance, etc., not affected. Nothing in this section shall apply to or in any way affect title insurance business, fraternal benefit societies or county mutual fire insurance companies.

Fees. Nothing herein contained shall in any manner limit the fees provided for in section six hundred five of the Political Code. [New section added June 1, 1917; Stats. 1917, p. 1615.]

§ 633b. Policy must contain true statement of premium and risk. No insurance or surety company or society, nor any agent, shall insure any risk in this state, nor shall any agent or broker assist in arranging any such insurance, the policy or contract for which does not contain a true and correct statement of the premium consideration paid or to be paid therefor, and of the risk covered for such premium consideration; provided, however, that if the insurance be of a character where the exact premium is only determinable upon the expiration of the policy or contract, such policy or contract must contain a true and correct statement of the basis and rates upon which the said final premium or consideration is to be determined and paid, and of the risk covered for such premium consideration.

Covering notes. This section shall not be construed to prohibit the use of covering notes to temporarily bind insurance or surety bonds pending the issuance of the policy or contract; provided, that for every such covering note so used, within ninety days thereafter a policy or contract shall be issued in lieu thereof, including within its terms the identical insurance protected under said covering note and the premium consideration paid or to be paid therefor.

Rebates prohibited. No insurance or surety company or society, by itself or by any other party, and no agent, or insurance broker, personally or by any other party, shall offer, promise, allow, give, set off or pay, directly or indirectly, as an inducement to insurance on any risk in this state, now or hereafter to be written, any rebate of or part of the premium payable on the policy or contract of insurance or surety bond, or of the agent's or broker's commission thereon; nor shall any such company, or society, agent, or broker, personally or otherwise, offer, promise, allow, give, set off, or pay, directly or indirectly as an inducement to such insurance any earnings, profits, dividends, or other benefit, founded, arising, accruing, or to acrue on such insurance or surety bond, or therefrom, or any other valuable consideration which is not clearly specified, promised or provided for in the policy or contract of insurance, or in the application for such surety bond; provided, however, that nothing in this section shall be construed to prevent a mutual fire insurance company from returning any portion of the premium as a dividend, at the expiration of the term covered by such premium.

Commission. Discount on marine insurance. Nothing in this section shall be construed to prohibit any insurance or surety company or

society, or agent for such company or society, or broker, from paying commission to another company, society, agent, or insurance broker, nor shall this section be construed to prohibit any marine insurance company, agent, or broker from allowing any insured, such usual discount as is sanctioned by custom amongst marine insurers as being additional to the agent's or broker's commission, but this exemption shall in no wise operate to relieve marine insurance in any other respect from the full operation of this section.

Agent's commission on own insurance. This section, except as hereinbefore specifically-provided, shall not be construed to prevent any insurance or surety company from paying to another insurance or surety company, or to an agent or broker, or to prevent any insurance or surety company or such an agent or broker from receiving a commission in respect to any policy under which it, itself, or he, himself, is insured.

Bonuses. Nothing in this section shall be so construed as to prohibit any company issuing nonparticipating life insurance from paying bonuses to policy-holders or otherwise abating their premiums, in whole or in part out of surplus accumulated from nonparticipating insurance; nor to prohibit any company transacting industrial insurance on the weekly payment plan from returning to policy-holders who have made premium payment for a period of at least one year directly to the company at its home or district offices, a percentage of the premium which the company would have paid for the weekly collection of such premiums. This section shall not be construed to prevent any life insurance company paying, or contract holders receiving special compensations, or allowing and receiving credits already agreed upon in contracts now in force.

Producing books, etc. No person shall be excused from testifying or from producing any books, papers, contracts, agreements or documents at the trial or hearing of any person or company, association or society charged with violating any provisions of this section, on the ground that such testimony or evidence may tend to incriminate himself, but no person shall be prosecuted for any act concerning which he shall be compelled so to testify or produce evidence, documentary or otherwise, except for perjury committed in so testifying.

Responsibility of company. Every insurance company or society shall be charged with full responsibility to exercise reasonable diligence for the observance of this section by its agents and it shall be unlawful for any insurance or surety company to appoint as its agent any person, firm or corporation, or the employee or nominee of said person, firm or corporation, for the purpose of enabling such person, firm or corporation to obtain a policy or contract of insurance at a cost less than that specified in any policy or contract of insurance issued to such person, firm or corporation, or at a cost less than that specified in any application for any surety bond issued in behalf of such person, firm or corporation.

Penalty. Certificate of authority suspended. An officer or employee of any insurance or surety company or society, or any agent or broker, or any officer or employee of such agent or broker who violates any of

the provisions of this section shall be guilty of a misdemeanor. Upon it being proven to the insurance commissioner after a hearing upon reasonable notice to the accused of the time and place of such hearing that any insurance or surety company or society shall knowingly have violated any of the provisions of this act, or shall knowingly have permitted any officer, managerial agent, or managerial employee, to violate any of the provisions of this act, he shall have authority to suspend the certificate of authority of such insurance or surety company or society to do the kind of business in which the violation of the provisions of this act occurred.

Agent's license revoked. And the insurance commissioner shall have authority to suspend or revoke the license issued to any agent or broker on its being proven to him, after hearing, that such agent or broker has knowingly and willfully violated any of the provisions of this act.

Action to review facts. If at any time the insurance commissioner suspends the certificate of authority theretofore granted to any insurance or surety company, or revokes or suspends the license theretofore granted to any broker or agent, or refuses to grant a certificate of authority to any insurance or surety company, or license to any broker or agent, any interested person or company may commence an action against the insurance commissioner for the purpose of reviewing the facts and the law pertinent to the controversy and for the purpose of obtaining the relief refused or for canceling the action of the commissioner. In any such action the court shall have full power to investigate all of the facts de novo, without regard to the determinations previously made by the commissioner. In the trial of such actions all of the provisions of the Code of Civil Procedure, shall be applicable. Such action shall be commenced and tried in the superior court of the county in which such insurance or surety company or society has its principal place of business in this state, or in which such broker or agent resides, unless the parties thereto stipulate otherwise.

Title insurance, etc., not affected. Nothing in this act shall apply to, or in any way affect reciprocal or interinsurance contracts, title insurance business, fraternal benefit societies, or county mutual fire insurance companies. [New section added June 1, 1917; Stats. 1917, p. 1612.]

§ 678. Notice to state board of control and treasurer of bond sale. Whenever, under the provisions of law, the board of supervisors, trustees, common council or other governing boards or bodies of any city or county, city or town or school district of this state shall advertise the sale of bonds voted for any purpose, the clerk of such board of supervisors, trustees, common council or other governing board or body shall forthwith by mail, postage prepaid, notify the state board of control and state treasurer at the capitol of such issuance and sale of bonds and shall specify the purposes for which such bonds were voted, the amount of the total issue for each purpose, the denomination of each bond showing date of issuance and date of maturity, the rate of interest showing when and where payable, the assessed value of the property upon which such bonds are a lien, the total amount of other bonded indebtedness which is a lien upon said property, and shall upon request of the state

board of control furnish a full description of the proceedings leading up to such issue; provided, that no certified check, bond or other assurance in law shall be required from the state upon its bid to purchase bonds. [Amendment approved May 14, 1917; Stats. 1917, p. 466.]

§ 686. Department of public accounting. Superintendent. Bond. Additional accountants. Department of public accounting. Superintendent, etc. There is hereby established in connection with and under the supervision of the state board of control a department of public accounting. The board shall appoint a superintendent of accounts at an annual salary of three thousand six hundred dollars, and two assistants at an annual salary of two thousand seven hundred dollars each. Such appointees shall be skillful accountants and well versed in public accounting. They shall (each) execute a bond to the state in the sum of ten thousand dollars. They shall be civil executive officers and their salaries shall be paid in the same manner and at the same time as the salaries of state officers are paid. The board may also appoint such additional accountants as may be necessary to carry on the work of the department at salaries not to exceed for any one of such appointees the sum of two thousand four hundred dollars per annum. Such salaries, upon authority of the board, shall be paid out of money appropriated for the use of the department at the same time and in the same manner as the salaries of state officers are paid. Such accountants shall be chosen from persons who have successfully taken an open competitive examination given along practical lines showing their fitness for the work required. They shall each execute to the state a bond in the sum of five thousand dollars. All of the appointees in this section are empowered to administer oaths in the furtherance of their official duties. [Amendment approved May 14, 1917; Stats. 1917, p. 467.]

§ 718. Employees of superintendent of capitol building and grounds. The superintendent of capitol building and grounds may appoint one head gardener at an annual salary of two thousand one hundred dollars, and one assistant head gardener at an annual salary of one thousand three hundred twenty dollars. He may appoint seven special policemen for the building and grounds at annual salaries of one thousand three hundred twenty dollars each, who shall have the power of peace officers, and the same power of arrest as is herein given to the superintendent. None of said policemen shall be required to work more than six days in any one week. He may appoint one clerk for his office at an annual salary of one thousand eight hundred dollars, who shall be a civil executive officer; one head porter for the building at an annual salary of one thousand two hundred sixty dollars; one typewriter expert at an annual salary of one thousand three hundred twenty dollars. He may appoint one engineer at an annual salary of one thousand eight hundred dollars; one fireman at an annual salary of one thousand two hundred sixty dollars; one electrician at an annual salary of one thousand eight hundred dollars; provided, however, that the superintendent is hereby empowered to employ an additional electrician for emergency purposes. The superintendent may also appoint two elevator attendants at an annual salary of one thousand one hundred forty dollars each; three telephone ex

change operators at an annual salary of nine hundred dollars each. He may appoint to serve from January first until May first in each legislative year one engineer at a monthly salary of one hundred fifty dollars; one fireman at a monthly salary of one hundred five dollars; one electrician at a monthly salary of one hundred fifty dollars; two elevator attendants at a monthly salary of ninety-five dollars each; one telephone exchange operator at a monthly salary of seventy-five dollars; ten porters at a monthly salary of ninety dollars each. He may also appoint one telephone exchange operator at a monthly salary of seventyfive dollars, to serve six weeks each year while the legislature is not in session. The salaries of all such appointees shall be paid at the same time and in the same manner as other state officers. [Amendment approved May 24, 1917; Stats. 1917, p. 925.]

§ 759. Phonographic reporters in district courts of appeal. Each of the three district courts of appeal may employ and appoint a phonographic reporter, who shall be competent to write in shorthand at the rate of at least one hundred and fifty words per minute and to transcribe the same correctly. His duties shall be to take down in shorthand the proceedings of the court, and to act as secretary to the judges in the discharge of their official duties. His compensation shall be at the rate of three thousand dollars per annum. [Amendment approved May 21, 1917; Stats. 1917, p. 784.]

§ 791. Notaries public in counties of second class. The governor may appoint and commission such number of notaries public for the several counties, and cities and counties of this state, as he shall deem necessary for the public conveniences, except that in counties of the second class the number shall not exceed one hundred thirty. [Amendment approved April 11, 1917; Stats. 1917, p. 92.]

§ 995. Resignations of officers. Resignations must be in writing, and made as follows:

1. By the governor and lieutenant-governor to the legislature, if it is in session; and if not, then to the secretary of state;

2. By all officers commissioned by the governor, to the governor; 3. By senators and members of the assembly, to the presiding officers of their respective houses, who must immediately transmit the same to the governor;

4. By all county and township officers not commissioned by the gov ernor, to the clerk of the board of supervisors of their respective counties;

5. By all other appointed officers, to the body or officer that appointed them;

6. By members of the board of trustees, and other officers of a municipal corporation, to the clerk of the board of trustees of their respective corporation.

7. In all cases not otherwise provided for, by filing the resignation in the office of the secretary of state. [Amendment approved April 5, 1917; Stats. 1917, p. 38.]