for interest on loans, specifying the same; (6) Rents received; (7) Cash received from all other sources, specifying the same; (8) Gross amount of notes taken on account of new premiums; (9) Gross amount of notes taken on account of renewal premiums.

EXPENDITURES.

Fifth-(1) Cash paid for losses; (2) Cash paid to annuitants; (3) Cash paid for lapsed, surrendered, and purchased policies; (4) Cash paid for dividends to policyholders; (5) Cash paid for dividends to stockholders; (6) Cash paid for reinsurances; (7) Commission paid to agents; (8) Salaries and other compensation of officers and employees, except agents and medical examiners; (9) Medical examiners' fees and salaries; (10) Cash paid for taxes; (11) Cash paid for rents; (12) Cash paid for commuting commissions; (13) All other cash payments. Sixth-Balance sheet of premium note account.

Seventh-Balance sheet of all the business of the company. Eighth (1) Total amount of insurance effected during the year on new policies; (2) Total amount of insurance effected during the year in the State of California; (3) Premiums received during the year on business done in the State of California.

Enacted March 8, 1907; stats. 1907, p. 157.

Mutual companies.

§ 614. Mutual companies formed, existing, and doing business under an Act entitled "An Act to provide for the incorporation of mutual insurance companies," passed April twenty-sixth, eighteen hundred and fifty-one, may report their approved stock as capital paid up, and such notes for all purposes must be deemed part of the paid-up capital stock of such corporation. Enacted March 8, 1907; stats. 1907, p. 159.

Forms of statements to be furnished.

§ 615. The insurance commissioner must cause to be prepared, and furnish on demand to each of the companies printed forms of the statements herein required; and he may make such changes from time to time in the form of such statements and reports as seems to him best adapted to elicit from the companies a true exhibit of their condition. The same forms must be so furnished on demand to all companies engaged in the same kind of business.

Enacted March 8, 1907; stats. 1907, p. 159.

Foreign companies must designate name of agent-StipulationService of process.

§ 616. The insurance commissioner must require, as a condition precedent to the transaction of insurance business in this state by any foreign insurance company, that such company file in his office a writing designating the name of an agent, and his place of business in this state, on whom any notice provided by law or by any insurance policy, proof of loss, summons and other process may be served in all actions or other legal proceeding against such company. All notices, proof of loss, summons or other process so served give jurisdiction over the person of such company. The agent so appointed and designated shall be deemed in law a general agent, and must be the principal agent of such company in this state; any such foreign company shall, as a further condition precedent to the transaction of insurance business in this state, and in consideration of the privilege to transact such insurance business in this state, make and file with the insurance commissioner an agreement or stipulation, executed by the proper authorities of such company, in form and substance as follows: The (giving name of company) does hereby stipulate and agree that, in consideration of the permission granted by the State of California to it to transact insurance business in this state, that if at any time said company shall leave this state or cease to transact business in this state or shall be without an agent in said state, on whom any notice, proof of loss, summons, or other legal process may be served, then in any action or proceeding arising out of any business or transactions which occurred in this state, service of any notice provided by law, or insurance policy, proof of loss, summons, or other legal process may be made upon the insurance commissioner, and that such service upon the commissioner shall have the same force and effect as if made upon the company. Whenever such service of notice, proof of loss, summons, or other legal process shall be made upon the insurance commissioner, he must, within ten days thereafter, transmit by mail, postage paid, a copy of such notice, proof of loss, summons, or other legal process to the company, addressed to the manager, president, or secretary thereof at its home or principal office. The sending of such copy by the commissioner shall be a necessary part of the service of the notice, proof of loss, summons, or other legal process. When any notice, summons, or other legal process is served upon the insurance com

missioner pursuant to the provisions of this section, the service as to the company shall be deemed complete at the end of sixty (60) days after the date of the delivery of the notice, summons or other process to the insurance commissioner. When any

notice, provided by law or by any insurance policy, is to be served on the agent designated, as in this section provided, such service may be made as provided in chapter V, part II, title XIV of the Code of Civil Procedure.

Enacted March 8, 1907; stats. 1907, p. 159.

VII Cal. App. Dec. 5.

Penalty for failure to file statements.

§ 617. The commissioner must collect the sum of one hundred dollars from any company engaged in the business of insurance in this state, for a willful failure to make and file in his office within the time prescribed by law, any statements or stipulations required by this title, and an additional penalty of two hundred dollars for each and every month or fractional part of a month thereafter, that such company continue to transact the business of insurance until such statements and stipulations are filed. Enacted March 8, 1907; stats. 1907, p. 160.

When laws of other states require trust deposit, duty of commissioner-Special deposit in state treasury.

§ 618. Whenever the laws of any state of the United States, or of any country foreign to the United States, require any insurance company organized under the laws of this state, to deposit with some officer of this state securities in trust for, and for the benefit of, the policyholders of such company, as a prerequisite to transacting insurance business in such other state or foreign country, and whenever under any laws of this state any insurance company is required to deposit with any officer of this state securities in trust for, and for the benefit of policyholders of such company, the insurance commissioner of this state must receive from such company securities in the amount required by the law under which such deposit is made on deposit and in trust for the policyholders of such company. None of such securities so deposited must be estimated above the par value of the same, nor above their market value. The insurance commissioner must, upon the receipt of such securities, forthwith make a special deposit of the same in the state treasury, in packages marked with the name of the company from whom received, where they must remain as security for policyholders

in the company to whom they respectively belong; but so long as the company continues solvent he must permit it to collect the interest or dividends on the securities so deposited, and from time to time to withdraw any such securities on depositing other securities in the stead of those to be withdrawn. Such new securities to be of the same value and character mentioned in this section, but such securities must not be withdrawn from the state treasury unless upon the written order of the company making the deposits, which order must be indorsed by the commissioner, or upon the order and authority of some court of competent jurisdiction. If the deposit is of mortgages, it shall be accompanied by full abstracts of title or policies of title insurance or certificates of title issued by a duly organized title insurance company authorized to transact business under the laws of California, and the fees for examination of title, unless accompanied by such certificates of title or policies of title insurance, and the fees for appraisal of property shall be paid by the company making the deposit. If the deposit is of stocks or bonds, it shall be accompanied by the fees necessary for the appraisal thereof.

Amended April 15, 1909; stats. 1909, p. 909; in effect in sixty days.

Certificate of deposit.

§ 619. Whenever an insurance company has deposited with the commissioner the requisite security, in conformity with the requirements of the preceding section, the commissioner must issue to such company a certificate, under his official seal, of such deposit, for each state or country requiring the same, which said certificate must state the items and amount of securities so deposited, and that they are of the value therein represented. Enacted March 8, 1907; stats. 1907, p. 161.

Withdrawal of deposit.

§ 620. Whenever any insurance company so depositing securities with the commissioner has paid, canceled, or reinsured all its unexpired policies outstanding in the state, satisfactorily to the insurance commissioner, and all its liabilities under such policies are extinguished, or assumed by other responsible companies or corporations, then, if on application of such company, duly verified, and from an examination of the books of the company, and of its officers under oath, the insurance commissioner is satisfied that all of its policies are so paid, canceled, extin

guished, or reinsured, he must deliver up to the company the securities deposited; provided, however, that pending such examination the securities requested to be withdrawn may at the discretion of the commissioner be delivered to the depositor upon the condition that the applicant deposit with the commissioner securities of like value; and whenever the laws of any other state or country, by reason of which section six hundred and twenty-two of the Political Code of this state is brought into force, shall be repealed and abrogated, then any deposit which shall have been made with the commissioner, under and by reason of said section six hundred and twenty-two of the Political Code, must be delivered up to the company making the deposit.

Enacted March 8, 1907; stats. 1907, p. 161.

Annual examination of securities.

§ 621. The commissioner must make an annual examination of the securities received by him from each insurance company, and if it appear at any time that the securities deposited by any such company amount to less than the sum required for the purposes for which the deposit was made, he must notify the company thereof, and unless the deficiency is made up within thirty days after notice, the commissioner must revoke the certificate of authority previously granted and countermand all the certificates he may have issued to the company under this chapter, and give notice thereof to the officers of the several states to whom the certificate may have been transmitted. Enacted March 8, 1907; stats. 1907, p. 161.

Relative to laws of other states.

§ 622. When by the laws of any other state or country, any taxes, fines, penalties, licenses, fees, deposits of money or of securities, or other obligations or prohibitions, are imposed on insurance companies of this state doing business in such other state or country, or upon their agents therein, in excess of such taxes, fines, penalties, licenses, fees, deposits of securities, or other obligations or prohibitions, imposed upon insurance companies of such other state or country, so long as such laws continue in force, the same obligations and prohibitions of whatsoever kind must be imposed upon insurance companies of such other state or country doing business in this state. And whenever under this section any deposit of security shall be