xt7kpr7msd2k https://exploreuk.uky.edu/dips/xt7kpr7msd2k/data/mets.xml North Carolina Historical Records Survey of North Carolina 1940 Prepared by the North Carolina Historical Records Survey, Division of Professional and Service Projects, Work Projects Administration; Other contributors include: United States Work Projects Administration Division of Professional and Service Projects, North Carolina Historical Commission; 78 leaves, 28 cm; Typescript (photocopy); Included bibliographical references and index; UK holds archival copy for ASERL Collaborative Federal Depository Program libraries; Call number FW 4.14:N 81c/ser.4/no.3 books English Raleigh, North Carolina: The Survey This digital resource may be freely searched and displayed in accordance with U. S. copyright laws. North Carolina Works Progress Administration Publications Inventory of the State Archives of North Carolina, Regulatory Agencies, Series IV, Number 3, Insurance Department text Inventory of the State Archives of North Carolina, Regulatory Agencies, Series IV, Number 3, Insurance Department 1940 1940 2015 true xt7kpr7msd2k section xt7kpr7msd2k y   _' ` [ .
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  * OF
? NO. as
~ Prepared by
_ The North Carolina Historical Records Survey Project
Division of Professional and Service Projects
_ Work Projects Administration
`( * =’»= =£< * !< >t< >i< .
`T Raleigh, North Carolina
· ` The North Caroline Historical Records Survey Project
‘ August 1940

 I S  
{ I
I ]
1 WPA Historical Records Survey Program
Sargent B. Child, National Director
Hilton W. Elenton, Regional Supervisor
i Colbert F. Crutchfield, State Supervisor
  Division of Professional and Service Projects
I Florence Kerr, Assistant Commissioner
I Blanche ii. Ralston, Chief Reggionel Supervisor
  Hey E. Campbell, State Director ·
, E`. C. Harrington, Coznzrulssioner
{ Efinlcolm J. Kill er, Regional Director
l C. C. 1--IcGinnis, State Administrator
n Sponsored by the Eorth Caroline. Historical Commission
I Bi. C. S. Noble, Chairmen,
C. C. Crittenden, Secretary '

 F O R E W`O R D
The Inventory of thc State Archives of Forth Carolina is cnc of a
number of”€i$li$Z?d§KiEs" §Y€§EF€H`throughout thc
Uritcd States by workers on thc Historical Records Survcy of thc Work
Projects Administration. Each stats dcpartmcut, institution, or other
ugcucy will bc represented by a scparatc section of tho inventory; thc
scctiom For functionally related agcncios will be groupcd in series.
The Historical Records Survey Program was undertaken in thc winter
of 1955-G6 for thc purpose of providing useful employment to needy un-
cmploycd historians, lawyers, teachers, and research and clcricalxvorkcrs.
In carrying out this objective, rhs project was organized to compile
inventories of historical xmtsrials, particularly thc unpublishad govern-
ment documents and records which nrc basic in the administration of locol
government, and which providc iuvolun“lc data for studcnts of political,
cconomic, and social history. Tho archival guido hcrcwith prcscutcf is
intended to mcct thc rcquircmcnts of day-to—i;y admiuistrubion by the
officials of the Stzio, and also thc rcgds of lawyers, business urn ond
. other citizens who require facts from khc pullic records for the proper
conduct of their affairs. The rolumc is so dcsilwcd thwt it can bs used
by thc historian in his research in uxprintcd sources in thc sono wiy hc
uses thc library card caialol {yr hrimteJ sourecs.
The inventories produced by the historical Records Survey Program
attcmpt to do more than mcrcl; {irc u Fist o? reccrds~-tlcy akicupt to
skctch in the historical background ard fo ico riic prac soly ord in
detail thc organization and functions of th: l @}C;CF whose rccords thoy
list. The inventories for thc anhirc country will, nhs; conglctcu,
constitute an encyclopedia of stotc and local ;ox;rnmcnb as well as a V ‘
bibliography of stitc and local Urchivcs.
Thc succcssful conclusion of thc york of the Zistorical Qccords
Survey Program, oven in a singls ajcucy, would no? bc possible wiihout {hc
— support of public officials, historical and lcgal specialists, and many
other ;roups in thc community. Their co—opcrotiou is gratefully
Tho Survcy Program was organized by Luther H. Evans who scrvod us
Director until his oppointmcnt as Dirocbor of thc Lcgisletivc Hc?crcnco
Scrvicc of the Library of Congress. To was succcodcd on Ihrch l, l9¢O,
by Sargcnt B. Child, who had scrvcd as Ficld Supcrvicor since the
inargurction of the Survey. The Survey Program opcroics as s nation-
wide series of locally sponsorcd projccts in the Divisioa of Profcssionfl
and Service Projccts, of which Piss Florrrcc Kcrr, Assistant Commissicu;r,
is in charge. C

Tho Historical Records Survey was created in tho winter of 1935-58
as o Nation-wids Works Progress Administration project for tho "discovsry,
° preservation and listing of basic materials for rosourch in thc history
of tho United Ststcs."l Under tho direction of Dr. Luther H. Evans, the
Survey undertook an oxtonzivo program for tho invtntory of stotc and
local archives, early Amorioon imprints, church archives, and collections
of manuscripts. Pursuant to the provisions of tho Emergency Relief Act
  passed June 30, 1959, tho oxistoncs of tho Survoy as s single Nation-wido
projoot sponsored by·WPA itsol? wss terminated August 31, 1950; and tro
work of tho Survoy was oontinuod within the individual Stotos by locally
sponsored projects opornting within the national FFA Historical Records
Survey Program which continued under tho direction of Dr. Evans until his
resignation and the subsoquont appointment of Sargent B. Child on March 1,
Tho North Carolina Project of the national Historical Rocords Survey
was established February l, 1936, with Dr. C. C. Crittondon, Secretary of
tho North Carolina Historical Commission, as dirootor. Until Novrmbor
1936 tho Survcy Oporatod ss an sutonomovs unit of the Fodorsl Tritors'
Projoot, dircotod in North Curolirs ty Edwin Bjorkmun. Dr. Crittondon
rosignod as Stuto Director Juno ZC, 1957, and was suoooudod by Dan Lacy,
who had previously served as Assistant Stato Director. Tho work of the
North Carolina unit of the Historical Records Survoy was continued by the
North Carolina Historical Records Survey Projoot established Soptombor l,
1959, and sgonsorod by tho North Carolina Yistorical Commission. fr. Lacy
resigned as State Supervisor on.April 2, 1940, to sccoot on appointment
as Assistant to thc Dirootor of Historical Records Survey Projects in
Washington, D. C. Colbort F, Crutohfiold, who had served as Assistant
Stats Supervisor undor Kr. Lucy, became Stats Supervisor.
Tho prcsont invontsry of the rocorCs of tho Inruronoo Department is
a soction of tho lnvcntory of tho_§toto Aronjvos of Xort¥ Circlino Boing
proporod by thc H`£>1~sh   M jo;-1;. Tim
inventory was propsrod undor tho supor*ision .Al‘ of hr. hronson Larluyt As-
sistant Projoot Suporvisorin cksrgo of public archives. Fiold work was
dono by Goorgo B, Umstosd, Iomnrd E. Buck, and Irs. Lotitis E. Robbins
undor thc suporvision of James W} Porktr. The inventory was road For the
sponsor by Dr. C. C. Crittondsn of thc North Carolina Kistoricnl Commis-
i sion and was oditsd by·Liss jakol S. Droiio of tho notional of?ico staff.
The Survoy is inlobbci to tho mombors of tho staff of tho Insurance Us-
partmont for tloir gsnorous oo-oporation in tho work.
August l9·1O t
l. `uorks Progress Administration, Opsrating Procoduro Lo. T-C, Row rod
July Z, 1957.

1. Structural Grgeuizatiou and Evolution
The regulation of insurance companies, because the insurance business
is affected with e public interest, has for some time been a subject for
statutory cusctrmnt. The first general low was an not of the General As-
sembly o? 1650 which placed u tax of $100 on each insurance company
iucorporutcd within the State and u tex of 31OO for the first county and
QBO for each additional county in which it cperuted on each insurance
company incorporated in unother stute.1
Thc Insurance Department as u separate department was uct establish-
ed until 1899. Prior to that time the regulation of insurancc companies
was largely m function of the Secretary of State. ’l4. ln 1871 the Gcncrcl As-
sembly passed s liw requiriug every corporation doing insurance husincss
in Forth Carolina to more u full report to the Secretary of State and to
notify thc public of its financial status by publishing the required report
in u newspaper printed in Raleigh and solccted by the Secretary of State.?
The some act required that the Secretary of State appoint em examiner to
report once a Year on the condition of cech company and to be paid by the
companies exumiucd.° Failure of en insurance company to exhibit its books
for such examination constituted e misdemeunor.4 At the same session each
company was required to receive a license from the Treasurer after payment
of u license tux to be prescribed by him.5
The 1S7é—7L session of the lcgislmturc providcd that the Secretary of
State could require u rcpori morc frequently than once 2 ycsr and required
him to examine all rcpcrts thoroughly to sec that the compsmics were opera-
ting within the law. The annual rcports of companies were to be priutcd
in two mcwspgpcrs published iu Raleigh. The Secretary of Stctc was fur-
thcr required to scnd copits of ull vuuunl reports to thc clcrk of super-
ior court of each county who must cctcr such rcports in a book kept for
that purpose cud open to public inspection. pThc Secretary of State was
also required to kccp copies of all rcpcrts.O All insurance companies
were required to obtain s certificate of approval from the Secretary of
State before they could transact business in Korth Cerclina.‘ Building
and loan associations were specifically exemptcd from this &ct.8
Foreign insurance companies, in orier to do business in Forth Caro-
1. Laws of 1550, c. 121, s. 7. 5. Ibid., C. 58.
2. `W$T1?"LE§@‘“Sr r·im~w csyS1_1sS,     Or rwu; csrsijrns-,
T@"‘FT-??"2]““6T   T8"77’£-7”5,`?~Z"'2`o5, S TTI
after cited cs Public Luws. 7. Ibic., s. 3.
:=. ism., S. is ""`“'""`”`“ 8.  
4-. QTQT, S. 44

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lina, wore required to have a capital of Q100,0009 and to have in this
State an agent on whom civil process could be servcd.lO A certificate of
appointment of the agent was to bc filed with the Secretary of State,ll
Foreign cogpanies were further required to report annually to the Secretary
of State,1“ to appoint a general agent for the State who must receive a
license from the Secretary of Stet0,13 and to pay to the State the same
deposits, fees, taxes, fincs and penalties as they paid in any othor state
in which they did business.l4 The Secretary of State was required to report
to the Auditor on the first of each month all license taxes and fees receiv-
ed from insurance 0ompanies.l5
Each fire insurance company which did not invest all its assets in the
State but wished to operate therein was required to post a $10,000 bond
with the State Troasurer.l6 This provision was repealed in 1885.17
In 1885 the Secretary of State was required to issue a license to any
insurance company before it could transact businesslg and to keep the ro-
ports of all companies for public inspe0tion.l9
The legislature of 1895 restated certain powers and duties of the
Secretary of State in the regulation of insurance companies. It was pro-
— vided that he should biennially visit insurance companies operating in this
State for the purpose of examining their financial condition,2O that he
could refnse to grant a license to any company of whose solvency he was
doubtful,Ll that he should¤Dublish an annual account of his official nots
as insurance oommission0r,¤2 and that he should report biennially to the
General Asseublg and make any needed re00mmendations.23 It was further
required that each agent of any insurance company obtain a license annual-
ly from thc $ecretary of State showing that his company was authorized to
do busim0ss2* and that fire insurance companies use in all contracts made
in North Carolina the standard fire insurance policy form on filo in the
office of the Secretary of State.25
No insurance company .~‘· could do brsiness in this State unless it satis-
fied the Socretary of State of its reliability and solvency, but a bond of
$2,000 was ipso facto proof of any ccm§any’s reliabi1ity.z°
The General Assembly of 1899 passed the North Carolina Insurance Act,
which established a separate and distinct department charged with the exe-
cution of all laws passed in relation to insvrance and other sukjccts placed
9. Mutual companies need have only a 17. Ibid., 1885, 0. 178, s. 2.
capital of $50,000. Laws of Forth 18. IETF., 1885, 0. 57, s. 1.
U Carolina, 187s-75, 0.?0§T ET 7T--- 19. Ioio., s. Q.
_ 10. IEiH:t`I87G—77, s. 157, ss. 1, 2. 20. ruBli0 Laws, 1895, 0. 299, s. 1.
_ ll. IETF., s. 2. 21. Imio., s. E. ‘
12, Ibid., S, 4, 22. 1510., s. 5.`
13. IETF., s. 6. 25. 1518., s. 10.
_ 14. Ibid., s. ll. 24. Ibid., S. 5.
_ ic.   S. 10.   TEE., S. 6.
16.   isvsa, S.   S. 1. 26. EWG., wss, S. sc?.

 - 5 -
under the depurtmwnt. The chief officer of the department is the Insurance
C0mmissioner.27 There are no prescribed qualifications for the Insurance
Commissioner, but like all elective officials he must be a qualified voter
of North Carolina, may not deny the being of God, and must not have been
convicted of any treason or felony, or of any crime for which punishment may
be imprisonment in the penitentiary, or of corruption or malpractice in of-
fice, unless his rights of citizenship have been restored in a manner pre-
scribed by luw.‘8 The first Insurance Commissioner was ,·». chosen bv the 1eris—
lature at its 1899 session. The creating mot provided that he should se;ve
until lnrch 1, 1901, and that in January 1901 the Governor, by and with the
consent of the senate, should appoint o Commissioner for a term of 4 years.29
The appointment provision was amended in 1907 to provide that the Insurance
Commissioner be chosen at the next general election and that every 4 years
thereafter an Insurance Commissioner Qiould be elected by the people of the
Stnte.5O The Insurance Commissioner is roquirod to take thc oath to supoort
the Constitution and lgws of tho Uhitod States and the constitution and L
lows of Yogth Caro1ina°1 and to post a $10,000 bond approved by the Stutc
Treasurer.°* The_Insuranco Commissioner originally rcczived a salnrv of
@2,000 per yecr.$* In 1919 his salary was increased to $5,500 a yea;;54
in 1955 it was fygther increased to C4,500;35 and in 1957 it was raised to
J6,000 per yenr.O A vacancy in the office of the Insurance Commissio e
may be filled by appointment by the Governor for the unexpired torm.57n T
The Commissioner, under the 1899 ect, was empowered to employ all
necessary clerical aid provided the expense did not exceed fl,0OO per year.58
In 1907 he was allowed to employ at his discretion expert accountants to
make a thorough investigation into the financial condition of any insurance
company; the payments for such services were to be iodo in the same manner
as for other bills against the Stoto.39 In 1909 he was allowed to aopoint
a deputy at t1,S00 A ye0r.4C In 1921 he was empowered to enolov two insur-
ance examiners who should exercise his function of exominq ooch insurance
company at least once tyienpial1y.4l Ee mis further authorized to emplov
additional insgrunce investigators and allotted F&,ooo annually to meet V
this cxpense.*“ This was repealed in 1525 and provision made for compan-
its examined to pay the cxponses.45
27. Public laws, 1899, c. 54, s. 5. missioner on thc condition of such
28. Gonig. AYtT VI, ss. 7, 8. I compony. Ibid., 1901, c. 7%.
29. YF$lic gigs, 1899, c. 5Q, s. 4. 55. Ihid., 18§0,—c. 54, s. 5.
30. Iggy., 1907, c. 868. 54. IETF], 19lG, c. 247, s. 4
51. Conét. Art. VI, S. 7. 35. ISYE., IQ55, c. 295.
_ . 2,:2.   Lmgl, iam, C. 124.,   5. se.   iam, C.  
IE{TTKHTTE7vvs provided that all 57. IEEE], l89", c. 54, s. 4;
persons that are required to ` I@G7, c. 85C.
_ give bond to the State of Iorth 58. Ibid., 1890, c. 5%, s. 8.'
Carolina may givo in lieu of per- 59. TETH., 1907, o. 100, s. 2.
sonal socurity any indemnity or 40, IETF., 1909, c. 859, s. 1.
I gugrmnty company as surety, bvt 41. IFTH., 1921, c. 218, s. l
must couorpcny his bond with a 42, ETEHQ, C_ 135, S_ 4.
e ctmtcmnnt of the Insurnncc Com~ Q3. IETF., 1925, c. 275, s. 6

 - 4 -
In 1919 hs was authorized to employ in tho Insurunco Dcpartnsni such
assistants cs worn cllowcd by tbv Govornor and Council of Stats providcd
those did not oxccod s chiof doputy at #2,5OC a yosr, c chic? clcrk at
$2,500 a ycsr, an mctunry at ;2,5OQ L ycsr, m coshicr at #1,5OO a your, ord
a license clork at $1,250 a yc&r.4& In 1924 hs was authorized to appoint
deputies to invsstigato forest firss.45
After the creation of thc Sudgct Euroau in 1925 the onactncnt of laws
authorizing the incroaso of personnel of the Department was ands unusccs-
sary. Tho Executive Budget Act gavc thc Governor, with the advice of the
Advisory Budéct Commission, cffcctivs supervision over thc employers and
oxpcnditurcs of every St&tG.&S€DCy•Q5 At thc present time tho psrsonrol
of trs Insurance Department consists of thc Tnsvrsmcc Commissioner, tho
Dgputy Insurance Commissioner, tb; Deputy Insurance Ccmmissionmr ir ckwrgc
of bui1cing and lomn companies, the Actuary, sight examiners, u s<1ior Audi-
tor, 2 juxior Auditor, a liccnsc c1crk, s lifc invostigutor, two firs in-
` ‘ vsstigators {ono of whom is tho Fire Tsrchal), two onginocrs (ous of whom
is tho Stats E1cotricm1 Enginoor), a sccrotcry, a stotisticcl clork, firs
stcmogrsphors, c filo clerk, ani n mail olork.
2. Powers and Duties
The office of the Insurance Commissioner was crcabsd jsr the PuTPOs@
of rsgu1sting insursncs companies in tho public interest.
Types of Companies Covsrcd
Every insurance company, sssociatior or order, cs mail as story bond,
investment, dividend, gusra;tsc, registry, title guarantee, icrsxivrs, or
such othor libc company (not strictly an insurance company, as dcfincd in
thc gcnsral insurance laws), must bo licensed and snpcrviscd by thc Insur-
ance Commissioner, and must pay all Ticonscs, taxes, sgd *s»_ foes as prcscribcd
in the insurance lmws or thc Stats For the class of compsn;, ossociwtion,
or order to which it belongs. No provision in any stxtrto, sublic or
private, may rslisvc any company, association, or ordcr from thc super-
vision proscribed or roleuss it from the puygsnf of the licsqss, taxss,
and fcos proscribed for companies, associations, and orders of the sans
Coupagiss, associmtioms, cgi ordors oz '.»‘ tho fo 1owirj Finds oro ra-
cognizcd: fire mso storm, marine, lifc, sickrsss, scoldcgt, fid©1i+y cid
_ Surety, plats glass, licoilitg, “oi1or uno mnchirdrf, Eurjlnrj, crcwit,
sp1*l1iI·i‘1cr, crrccidoirizs to V¤.¤l;ic1.<2s, -l.1"\.”'·Q}317OCZT, roc.1 ustroi. ·.’» tiiblo, uint? any
other ccsuslty which is ugtkorizcc by the chortcr of tlc comyswy irc is A
proper form of insuranso.*6 No corporation may trsnsact any cthcr busi-
1 44. Public Laws, 1919, c. 247, s. 4, c. 100.
      scm., 19211, O. 47. 1m·;., isms, C.   gs. 1-;:.
‘  S. 1. · as.   1¢=¤—si, C. ski,    
46. Ibid., 1925, c. 89; 1929, 1TYY?, c. QJG, s.1; E911, c.111,. ..
——_` :", 1.

   - 5 -
ness than that specified in its ckmr%c? and articlcs of usscci2ticn.%9
Any corporation 0r voluntary associmticn, other than az csscciatimn of
companies, the nwnbcrs of which wrc liccrscd in the Staic, which issues can-
tracts of insurance and which Aeimtuins A nriwcipal, branch, or ether of- ‘
fiqc within the Strtc xuvt qualify vnder the insurance lxws of the Stitc
gyylicoblc ko the type mf irsu*uucc mriitcn by such corporation or associa-
tion and sccuro a 1100220 frow thu Ilsuraucc Conmdssiogcr; the officers and
agents O? may such c0rp0r&%i0x cr &ss0ci¤tj0m f&Lliu; tm qualify and sccurs
2 license are guilty of a migdcweancr xnd upon conviction nay bc fined at
the discretion 0f the court.“O
Incor eration of Domestic Companies
The Insurance Commissioner is required to examine all certificates of
incorporation prcm&n%ed by the inccrpcraiors of proposed domestic insurance
corporations. If tu@ Insurance Ccmxdssioner, affer an examination 0f the
· certificate, approves it and finds that the requirem©n%s nf law have been
conglicd with, he certifies such Facts to ihe Sccrctmrv cf Skate. The
Secretary of Skate, aficr the certificate of inccrycraticm and attached
ccrtificctex have been filcd iu his office and REWGT tLe charter fees rc-
quircd for privatc cnrycrafions have been paid, records the certificate in
his office and is§u©s 21 0Qficiu1 clarter to the inccrwormtors of the in-
" · » ‘ . .
suraucc c0mpuny.0~ SLG 1WCO?LOT&YOT3 tncrcupcn h0lH an OTglDlZ&tlOH&l
mcctxng and adopt hflwys. A rucmrd of the first muatiwg is thc: certificd
to the ;nsurauc© C0mmis;i0ucr.52 When, after uwy cxaninafion he wishes to
‘ make, the Comnissicncr considers the company qvalificd under the laws of
tge Siuc©,P@e may grant a license to issue policies and make coniructs of
K0 domestic insurance cmgpany may issue pcliciés until the Insurance
~ C0mm1ss10n0r has examined if, fsurd anu cartifiai Li to comply with the
laws of the State, and authorized i? be issue p0lici@s.5* The issuance cf
policies in vinlafiom of this rcgulikion rwniars the ccwpany liable to a
fire, but such policies &rn binding vpcn *h© c¤mnanv.5¤
V&dmlSsi0m of F0r@i;m C0;p&;ies
A f€ruign insurance comynnf m¢7 b@ adniiicd wibh aufhoriti to do busi-
ness ll ;oy%h Cnroliru vhs; if Jcgosits with ih: Insurance Commissioner a
c©riifi©& copy of its ck¤r¥er or certificate of or mnizabicn and L state-
ment of its financial condition qn& busingss and Uuvs for the f*li¤# of fbis
stutcnqnt w;ch tau sum T®THD”Gd by law; w;®n 1% satncfrcs tac Cemmzssjoncr
that it is fully and rujularly mrgwmizcd under %hJ laws 0f its stu£© or
govcrnmcrt tc do buzinwss ii prwwczcs is trzasuct, that it has the required
».~~¤'·'— · A .·· ~·?-¤ iv-`»·~!· · — »»»—4 ·<- —- ¤»~- »— —. »-` V- ·   . V
a»F1b0l Gnu ¤us¤U¤,~Z,¤ such 0 ‘,A. ,MLQ} 0; hub .ssnia &;J null ;n"¤st¤d,und
thai if iwsvrcs or any sinrle hazard a sun mc larjsr *hw* 1/10 0T its *s¤~+s·
QC, Pup}ig_£qws, 1899, c, 5%, 52. Ibid., ISOQ, P, EQ, s. 25;
5. 46, ]UGb, c. {BH, ss. 2, 3,
db. EUIU., IQU7, 0. ug 56. 1‘1d., 1599, 0. a4, s. le.
(" L" ° r ~ ·v ‘ »— - '-T-•. Z _ , .
dl. I$1d., 18uS, 0. L4, S. Bb; 54. I {C., sz. 21, QJ,
Tgbé, O, ’7-.3:}, S5?. ?,3, 55, IiJ]%,, ]_?C¤[j, C, 458,, 5, ]_().

 - 5 -
when it files m duly oxccuicd instrument appointing the Insurance Cmi1is·
sicnar and his successor its true and lawful attorney upon whom all legal
processes in any action miy be scrvud, and, providing thai the process is
of the same force and validity as ii served on ihc company, Lhnt iL will
not have removed from any court in the State to the United States Circvit
or District Court any action imsiibuted against it, and that ii will rot
inshitute any suit in equi+y in the United Siatqs courts aguimsi any citizen
of this State growing out of cr in any wa;·c¤mn©ctcd with any cmlicy cf
insurance issued by ib; when it appoints as i%s agen? cr mgwnts in tUis
State scmu rusident or razidcnts tlericf; and‘xh©1 it Obiains fron LF¤ Tn-
suruncc Commissioner a ccrtificsta fhxi it has cmmylied wit§ the lawr of
` the State and is Authorized E0 mak: contract: of i;su¢umc©.b€
A reciprocal provision requires thai wh¤n amckhcy sista or nation im-
poses upon companies of this State icing Business in such other sitio or
nation fees, obligations, or pr0hi¥iti0ns grcaier tk;n thanx imposed by
this State upon insurance compumics of such ether si ii,. ic mr ration the same
fees, obligations, cr prohibitions mvst be ixnoscd .·:, upon all ixcurrncc copy;-
nics of such other state or mation d¤irg business ic Ehis Simba. Thur ut
insuruncu cwmpxmy crgiuizad under fh; lnws of any EYWTC or country is prn-
hibitcd fr0m.invcstimJ its assets wthrr than c1pi%;l stock iu tb; band; cf
this State, the Insur&mc¤ Commissions? is ;wth0rizcd and directed to refuse
to grant 1 license to irananch 1usi;oss.E7
Compliance 1itk .=-.‘‘ the prnvicioxs conceruixg furmiyx imawrmicc ccwpawiqs
may be enforced in thu ordinary caursc of legal yrccsdurz by action brought
in fha Superior Court of Hake Qoumfy by the Ak#0r1ey General in Che name of
the Stake upmn the relation cf The Ixsurvncc C¤muissjmn©r.€@
Deposits and Imvestmwnt of Capital
The Insurance Commissioner or the Trcpsurcr, in tgci; officia? capacity,
may hold in trusf dcpcsiis nude by any domestic insur~;cc covpgny Cyr the
1 purp0s@ 0f complying wifh the laws 0f any oihcr stm*e to cmzhia ahem to do
business in that stu*©. The company mu&imv the deposits is vztitled to ihs
inccmc thereof And may, from timu to tive, wiih ¥h© ©0~:©;t of the T:sur—
ance Commissioner or the Ty©us¤rur ard wh&: not Yorbidiuu by ihe law urdcr
which the deposit was made, change in wL0l; or in part fha securities
which compose thu dcbcsit for ckhas solvent sccurikies of equal pir valuc.
Upon relucst of any Qcmcskic company such 0f?ic;r way ratwrn to th» cmxpwny
thc whole or ary poriicr OF i%u mvcuriticx of iE@ company Lglé 3; lim Om
deposit whoa he is sptisfimd ihib thai arm SdhjLCi to no Iigbiiity @1Q are
not required to bq longer Qald %¢cmxsc cf any provisior of luv or of ,ur—  .`v
poses 0F original d0p¤sii.@9
A foreign comp;ny, if ipcqrgoyakcd or ums0ciu&e& vmlcr thc 1u*s ··.’. of any
government or stmfc cthcr than the United Sthtcs or one of t*n Vniicd States,
OC. Public Lu·s, i.·. 15QQ, c. 54, s. €2;° SS. Ibif., l3¤?, c. G@,`s. ICE;
T*I$ClT°'¤i"E1, S. 5; 1220%, C. 1;;:2, ‘   C. aw, S. 10.
» S. G. 59. Ibid., IBCV, 0. EQ, s. 17;
57. Ibid., 199C, c. Ei, s. 7l;“l€O3, T$UF, c. {3Q, s. 1,
T;`Z’7'5'5G, S. 11; 1927, C.  

 Y - 7 —
may not do business in this State until, in addition to complying with condi-
tions prescribed for the licensing and commissinning of such company, it has
· made a deposit with the Treasurer or the Insurance Commissioner of this
*· State of the United States of a sum not less than the capital required of
like companies under the insurance laws of this State. The deposit must be
, in exclusive trust for the benefit and security of all the company's policy-
holders und creditors in the United States and must be made in securities
» and be subject to the regulations specified with regard to the investment
of capital of domestic companies. The deposit is deemed for all purposes
of the insurance law the property of the compuny making it.6O
- An insurance company may purchase, hold, and convey real estate which
I is necessary for its immediate use in the transaction of business, which
has been mortgaged to it in good faith as security for loans, which has been
conveyed in satisfaction of debts, or which has been purchased at soles as
judgments, decrees, or mortgages obtsined or made for such debts. Any in-
surance company which held property under other circumstances prior to
Lnrch 6, 1899, was required to dispose of it unless the company procured a
certificate from the Insurance Commissioner that the interest of the com—
pony would suffer.61
The capital stock of the company must bo paid in cosh within 12 months
from the dots of the charter ond nmst be invested only in first mortgage
rool estate in this State, in bonds of the United Stotos or of any stute 1
whose bonds do not sell for less than par, or in bonds or notes of ony city,
county, or town of this State whose not indebtedness docs not exceed 5 por-
cent of the last valuation of property for purposes of toxstion.62 Any
other investments nust be specifically approved by the Commissioner.65
I The lnsuranco Commissioner has full discretion ir determining the method
‘ of calculating bonds ind other evidences of dobt.5&
The Insurance Commissioner may upon application examine the procood-
ings of domestic conxonios to increase or reduce their capital stock and
when found conformable to luw may issue certificates of authority to such
companies to transact business upon such increased or reduced capita1.65
Licensing of Companies
No insurance company may be authorized to transact more than one class
of insurance in this State unless it pays the license fees for each class;
but upon the payment of the largest license fee provided for any one type
of business done, A life insurance company may do u health business and a
fire insurance conpery may insure against loss or damage to property by
lightning, hail or tornado, use and occupancy, and for nonoccupancr, may
insure vessels, freights, goods, money, effects, and money lent on bottom-
ry or rcspcndontio against the perils of the sea and other perils usually
insured against by murine insurance, including risks of inlznd nxvigntion
GO. Public Lows, 18Q9,`o. Z4, s. 6%; c. 795; 1911, o. 52; 1€1$,
  S. c. C. zoo; mm. seas., 1s»2o; C.54;,
G1. Ibid., 1899, c. 54, s. 22. 1925, 0. 75; 1925, c. 187.
62. lbid], s. 27. Gd. lbid., 1Q21, c. 220. V
G3. TETH], 1907, c. 798; 1911, G5. lbid., 1899, c. 54, s. 15.

 .. 8 -
und transportation, and may also incur; u;n1xs+ 10:2 or dumuyc by water tc
any goods 0y property arising from 1c;k¢g0 03 syrin%10rs or wut r iipvs.
No insurance cmmpany may be rcquircd to @my liccnsc fems thai anoumt in
the aggregate no more unan #050 per y@ay.°6
The license required ccntiuucs for the next Gmsuiug 12 mcmfhs after
April 1 of each Year unless if is thcrwtofore revoked. Th0 Tnsurancc Com-
xissicucr may, however, whan the annual 11cc;s0 tax axes Js 125, proretc
tha fcc for th0 year by lam as may bc Que pro raia for the remainder of the
year beginning with hhv first day ci the cvrrcut m01th.G1
Licensing of Agmnts
1?"T"‘I"" Q_"‘(j]'1'l' "‘ '*·:}’= ‘°‘[‘ `='r' "{" ·`=`~‘< :==c· 1 ·¢ v~ : r—-.——v—.· ~»~·¤- n »·'·1~,~\¤·4 I-I », `! —'»· ,-1 '-.1. ‘
1.4*-». J hg, -¤» OJ. ¤.-.·.L_n1.~> .»K»* (4.-. :.;-:7 J.; ».,·1.1zL;..1C\.» CLJ..L;.u.1.‘._:_/ r.·.1.».¤».L..1, uk/C: bc 1.40 L.¤.·Sl"'
q~» cr `w {;`~·\¤ q·b··,·*·:= 1;:-+ `}x·b•‘ `·•·r 0 3·n~·wl1~:· ·[`¤·· wr~ +1:: Tv.qn··r·· ·¤ 4"r·r*·¤* rzirw ‘
Jes., 1.1   . ..00 rr1..J., 0. .11-.. .».1..11,... ., ...0,...     ,.12,,.0. JU.; ...s.,1.,11<,.1" ax
1100nsc showing Thqf the company f0r·1hi0h he is mgpnt mr prcioscs to ud~
just is 1ic©ns0d to dc buxincss in this Si&b0 nid flgf hm is ai p§c;k 0f
_ such company Cvly authorized to do Business for it.**
B form a licznsc may bn issu2d to in ugunt or adjuster in fkis Shake,
the agent 0r adjushcr and thw cmmpvmy for which he d©sir1s fc act must ap-
ply fcy the 1500nsU on forms pr0s0r1L~d %y’fb0 lzsurumcc Conuissicner,
Reform hc issucé 0 liccnsc, fhm Insurvncc Cgmmissimnmr must smti;Fy himself
that the pgrscn apilyixg is e p0rsum 05 ;c0d mural chiractcr, *h;b he in-
tends to h01& hiks;1f 0u+ as an insvraxce agent or gdjustey, thai he has
sufficient kn0w10dgc nf fha proposed business, ihmi H0 has not willfully
violated any insurance 13w sf the Stptu, 0nd that he is L prcjer porscn
for such p0s1ti0n.69
Annual Reports 0f Ccmpanias
To cn1b1: fhc lnsurwmce C©m;issimner bcttwr to ctfvrcc ·... EE0 payment 0?
thu taxes rcquiycd avery coypcration, firm, 0r i;&jvi0u ··.. 1 Qoimg insurance
business in the Sthtc, wmst, upon Gcmnnd 0f tha Insurance Commisricgcr,
furnish him a statcmint of thc ;m0un+ oi 211 inmuranuc lu1d by hiw, givin;
thc name cf thu company, nxmbgr and amount of y01i0i0:, ikc my uivms paid
on cnch, and such other information For which thx Cqmwizsionzy nwy 0011,
In 1icu 0f the above :ta