페이지 이미지
PDF
ePub

sioner shall give notice to such agent and cite him to appear before such insurance commissioner and show cause why his license as an insurance or surety agent should not be suspended or revoked. If at the hearing of said order to show cause it shall appear that said agent has wilfully misstated any material fact in his application to the insurance commissioner, or that the purpose or principal use of such license is to avoid or prevent the operation or enforcement of any antirebate law or other insurance law of this state, then the insurance commissioner shall either revoke or suspend the license of such agent, and shall notify both the agent and the company of such revocation or suspension.

[Action to review facts.] If at any time the insurance commissioner revokes or suspends the license theretofore granted to any agent, such applicant or agent 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 relief, or cancelling the act of the insurance commissioner. In any such action the court shall have full power to investigate all the facts de novo without regard to the determinations previously made by the insurance commissioner. All of the provisions of the Code of Civil Procedure relating to pleadings, proofs, trials and appeals shall be applicable to such actions.

Such action shall be commenced and tried in the superior court of the county in which such agent resides, unless the parties thereto stipulate otherwise.

[Time in force.] Unless revoked by the commissioner, or unless the company by written notice to the commissioner cancels the agent's authority to act for it, such license, or any renewal thereof, shall expire on the first day of July next after its issue or renewal. Any license issued after this section takes effect may in the discretion of the insurance commissioner be renewed for a succeeding year by a renewal certificate without the commissioner requiring the detailed information required by this section.

[Penalty.] Any person who shall act or offer to act or assume to act as an insurance or surety agent unless licensed by the insurance commissioner as provided in this section, or after such license granted to him or it has been suspended or revoked, shall be guilty of a misdemeanor, but any 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 be construed to apply to, refer to, or affect county mutual fire insurance companies, or their agents, or title insurance business, or fraternal benefit societies, or agents or employees of reciprocal or interinsurance exchanges.

[Fees.] Nothing herein contained shall in any manner limit the fees provided for in section six hundred five of the Political Code.

History: Original enactment approved March 12, 1874, Code Amdts. 1873-4, p. 66; amended April 6, 1880, Code Amdts. 1880 (Pol. C. pt.), p. 90; March 9, 1893, Stats, and Amdts. 1893, p. 116; repealed and present section approved March 8, 1907, Stats. and Amdts. 1907, p. 165, Kerr's Stats. and Amdts. 1906-7, p. 56; amended June 1, 1917, Stats, and Amdts. 1917, p. 1617. In effect July 31, 1917.

8 633a. LICENSE TO ACT AS INSURANCE BROKER. No person, firm or corporation shall within this state act as an insurance broker until such person, firm or corporation shall have first obtained a license from the insurance commissioner authorizing him or it so to act.

[Who are insurance brokers.) Any person, firm or corporation, other than an insurance or surety company, or society, or agent of such company or society, or employee compensated by salary only and acting on behalf of such company or society or agent, or a medical examiner for a life insurance company or society, who, for compensation acts or aids in any manner in negotiating contracts of insurance or surety bonds or reinsurance or placing risks, or effecting insurance or reinsurance for a party other than himself or itself, shall be an insurance broker within the meaning of this section. [License issued.] The insurance commissioner shall upon the payment of a fee provided for in section six hundred five of the Political Code, issue to a person, firm or corporation a license to act as an insurance broker to negotiate contracts of insurance or surety bonds, or reinsurance, or place risks, or effect insurance or surety bonds or reinsurance, with any insurance or surety company or society authorized to transact such business within this state, or with its agent, or with another broker;

[Application.] provided, however, that such proposed licensee shall first file with the insurance commissioner of the State of California, upon a form to be prescribed and furnished by said insurance commissioner, an application in writing, duly verified under oath, reciting:

1. The applicant's full name and address;
2. The applicant's experience in the insurance business;

3. If the applicant is engaged in any other business than insurance, the nature of such business and the name under which such business is conducted;

4. If the applicant be a copartnership, the names of the partners comprising such copartnership, or if the applicant be a corporation, the names of the officers thereof;

5. That the applicant intends to carry on in good faith the occupation of an insurance broker, and that said applicant does not seek a license as an insurance broker for the purpose of avoiding or preventing the operation or enforcement of the insurance laws of this state.

[Time in force.] An insurance broker's license so issued shall remain in force until July first of any year after the date of the issuance thereof, unless sooner revoked by the insurance commissioner. Such broker's license issued on an application as hereinbefore provided may in the discretion of the insurance commissioner be renewed upon expiration for a succeeding year upon the payment of a fee, provided for in section six hundred five of the Political Code, without requiring anew the details required in the original application.

Revocation or suspension of license. If it shall be brought to the attention of the insurance commissioner that any insurance broker licensed hereunder has wilfully misstated any material fact in his application, or that the purpose or principal use of such license as an insurance broker is to avoid or prevent the operation or enforcement of any antirebate law or other insurance law of this state, then the insurance commis. sioner shall give notice to such insurance broker and cite him to appear before such insurance commissioner and show cause why his license as an insurance broker should not be suspended or revoked. If at the hearing of said order to show cause it shall appear that said insurance broker has wilfully misstated any material fact in his application to the insurance commissioner, or that the purpose or principal use of such license is to avoid or prevent the operation or enforcement of any antirebate law or other insurance law of this state, then the insurance commissioner shall either revoke or suspend the license of such insurance broker and shall notify such broker of such revocation or suspension, and shall publish a notice of the revocation or suspension of said insurance broker's license in such a manner as he deems proper for the protection of the public.

[Action to review facts.) If at any time the insurance commissioner revokes or suspends the license theretofore granted to a broker, such broker 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 relief, or cancelling the act of the insurance commissioner. In any such action the court shall have full power to investigate all the facts de novo without regard to the determination previously made by the insurance commissioner. All of the provisions of the Code of Civil Procedure relating to pleadings, proofs, trials and appeals shall be applicable to such action.

Such action shall be commenced and tried in the superior court of the county in which such broker resides, unless the parties thereto stipulate otherwise.

[Nonresident brokers.) The insurance commissioner may upon application issue to nonresident insurance brokers a license to transact insurance in this state subject to the same qualifications, requirements, restrictions and fees as provided for resident brokers.

[Penalty.] Any person, firm or corporation, who shall act or offer to act or assume to act as an insurance broker, unless licensed by the 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.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917, p. 1615. In effect July 31, 1917.

$ 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, such insurance, any earnings, profits, dividends, or other benefit, founded, arising, accruing, or to accrue 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 herein before 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 policyholders 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 policyholders 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 comany.] 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.] An officer or employee f 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.

(Certificate of authority suspended.] 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 wilfully 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 the facts de novo, without regard to the determinations previously made by the commissioner. In the trial of such actions all of the provi. sions 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.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917, p. 1612. in effect July 31, 1917.

ARTICLE XVIII.

STATE BOARD OF CONTROL AND ACCOUNTING.

$ 678. City, county and district authorities to notify state board and treasurer of bonds for sale. 8 686. Department of public accounting. Superintendent, etc.

of the services.-Hammel v. Neylan, 31 Cal. App. 21, 159 Pac. 618.

§ 654.

1. State board of control-Powers, etc.The purposes for which the state board of control was created and the powers with which it was invested are in no very essential sense different from those governing the creation and defining the powers and duties of the state board of examiners, the final predecessor of the board of control.-U'Ren v. State Board of Control, 31 Cal. App. 6, 159 Pac. 615.

$ 671.

1. Rejected claims-Remedy.-Where the board of control finds that the conditions necessary to the justification of the claims had been complied with, and disallowed the claims upon grounds other than those prescribed by law, the remedy of the claimant is mandamus and not by appeal to the legislature, this latter remedy being forced on the claimant only in a case where the board finds that the services claimed, or the expenses incurred in the performance were unnecessary, because in the absence of such facts the allowance of the claim would be clearly unauthorized.-Hammel v. Neylan, 31 Cal. App. 21, 159 Pac. 618.

§ 663.

1. Serutiny and examination of claims presented under section 4290 are limited to an inquiry as to whether the sheriff has rendered the services set forth in his claim and whether the amount claimed for expenses was necessarily incurred in the performance

8 678. CITY, COUNTY AND DISTRICT AUTHORITIES TO NOTIFY STATE BOARD OF CONTROL AND TREASURER OF BOND SALE. Whenever, under the provisions of law, the board of supervisors, trustees, common council or other gov. erning 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 forth. with 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.

History: Enacted April 3, 1911, Stats. and Amdts, 1911, p. 595; amended May 14, 1917, Stats, and Amdts. 1917, p. 466. In effect July 27, 1917.

§ 682.

supervision and investigation given here

under, in a case of the character here in1. Board of control-Powers to sue for

volved, be exercised subject to and constate.—No power is vested in the board to

trolled by section 4290.-Hammel v. Neylan, institute or maintain actions for the recov

31 Cal. App. 21, 159 Pac. 618. ery of funds due the state. The powers of

« 이전계속 »