its president and secretary, or by officers corresponding thereto at its home office, wherever located, as to reinsurance or cessions, as aforesaid, contracted for, or effected through, the foreign office. The refusal of any such company or association to make the returns herein required shall be presumptive evidence that it is guilty of violating the provisions of the second section of this act, and shall subject it to the penalties prescribed and imposed by this act." Penalty for each wilful violation, $500; for non-payment of fine within thirty days, revocation of license, to continue at least one year. REINSURANCE RESERVE-Law of June 1, 1911, Sec. 7, provides that for fire insurance companies the Insurance Commissioner shall charge. fifty per centum of the premiums received on all unexpired risks that have one year or less to run, and a pro rata on all premiums received on risks that have more than one year to run; and in marine and inland insurance he shall charge fifty per cent on the premiums written on yearly risks and all the premiums received on all other marine and inland unexpired risks; on perpetual business the deposits received, less a surrender charge of not exceeding ten per cent thereof, as a reinsurance reserve. RESIDENT AGENTS-Law of May 8, 1899, Sec. 1. "No fire insurance com pany or association not incorporated under the laws of this State, author- SEMI-ANNUAL STATEMENTS-See "Tax Statements." Also "Fire Department Tax." STANDARD POLICY-A standard form of fire insurance policy, differing slightly from the form recommended by the National Convention of Insurance Commissioners, has been adopted, to go into effect on January I, 1915. TAXES Companies of other States and countries are taxed on gross premiums received in State, two per cent, allowing deductions for return premiums and reinsurance premiums, where the reinsurance is placed in companies authorized to transact business in Pennsylvania. Domestic companies pay eight mills on the dollar of gross premiums; ten per cent added for thirty days' delay in payment. Licensed brokers pay three per cent on gross premiums on risks placed with unauthorized companies. Penalty for neglect to pay tax, non-renewal of certificate until paid. Taxes must be paid into the State Treasury. TAX STATEMENTS-Must be filed semi-annually by July 31 and January 31, by domestic companies with Auditor-General; by other companies, annually on or before March 1 with Insurance Commissioner. See "Reinsurance." Credit is given for reinsurance in authorized companies. VALUED POLICY-No requirement. COUNTY TAXES AND FEES. Law of 1915, No. 122, prohibits the levying by any city, county or municipality of any tax or license on any insurance agent, broker or company other than the regular State licenses and fees. MUNICIPAL TAXES AND FEES. Law of May 3, 1915. 66* * * It shall be unlawful for any city, county, or municipality to impose or collect any license fee upon insurance companies or their agents, or insurance brokers, authorized to transact business under an act approved the first day of June, 1911. PHILADELPHIA-Fire Insurance Patrol, 14 per cent of net premiums, payable semi-annually. CALENDAR-PENNSYLVANIA Tax statement must be filed by domestic companies. Tax statement must be filed by other State and foreign companies. panies.. Annual statement must be filed. Agents' licenses must be obtained. April I Company license must be secured. July 31 Tax statement must be filed by domestic companies. Premium tax is payable by Pennsylvania companies. PHILIPPINE ISLANDS. AGENTS' LICENSES-Agents must secure licenses from the Insurance Commisioner before being entitled to transact business and receive commissions. Licenses are renewable annually before July 1. Original certificate shall be issued by the Insurance Commissioner only upon a written application. from the person desiring such authority, such application being approved and countersigned by the company such person desires to represent; renewal certificate may be issued upon application of the company. Violation of law is punishable by a fine of 500 pesos and revocation of license. Person acting as agent for unlicensed company is punishable by a fine of 200 pesos, or imprisonment for two months, or both. Provision is made for placing insurance in unauthorized companies. See "Licensed Brokers." A privilege. tax of 40 pesos is payable to the Bureau of Internal Revenue by each insurance agent, broker or solicitor, and applies to every individual who receives any commission or other compensation for services in obtaining new insurance. (The value of a peso is about 50 cents in United States currency.) This tax is payable in quarterly installments. ANNUAL STATEMENTS-Must be filed with the Insurance Commissioner on or before April 30, if fiscal year ends December 31; otherwise, within four months after close of fiscal year. An extension of not exceeding three months may be granted, if necessary. ANTI-DISCRIMINATION-All conditions relating to insurance must be expressed in the policy. Rebates or discriminations in rates on risks of the same class are forbidden. Insurance Law, Sec. 190. "Discrimination against a citizen of the Philippine Islands, whereby such citizen is given less advantageous rates, dividends, or other policy conditions or privileges than are accorded to Caucasians because of his race, is prohibited." ATTORNEY-A foreign company must designate some resident of the Philip pine Islands to receive service of legal process, the Insurance Commissioner being empowered to receive service in the absence of such attorney. CANCELLATION-The Insurance Act, Sec. 75. "A person insured is entitled to a return of the premium when the contract is voidable, on account of the fraud or misrepresentation of the insurer, or of his agent or on account of facts, of the existence of which the insured was ignorant without his fault; or when, by any default of the insured other than actual fraud, the insurer never incurred any liability under the policy." Sec. 76. "In case of an over-insurance by several insurers the insured is entitled to a ratable return of the premium, proportionate to the amount by which the aggregate sum insured in all the policies exceeds the insurable value of the thing at risk." CAPITAL REQUIRED-Foreign companies must have unimpaired capital or assets and reserve not less than is required of domestic companies (See "Deposit"). A domestic company must have a subscribed capital of at least 250,000 pesos, of which fifty per cent must be paid up in cash before the company begins business and the balance within twelve months after the date of filing of its articles of corporation. If the company fails to complete the capital payment within the prescribed time, it shall not be permitted to write new risks. A mutual company must have available cash assets of at least 250,000 pesos above all liabilities, including legal reserve. DEPOSIT-Insurance Law, Sec. 172. "No foreign insurance company shall engage in business in the Philippine Islands unless possessed of paid-up unimpaired capital (or assets) and reserve not less than that herein required of domestic insurance companies; and no insurance company organized or existing under the government or laws other than those of the Philippine Islands or any State of the United States shall engage in business in the Philippine Islands until it shall have deposited with the Insurance Commissioner for the benefit and security of its policyholders and creditors in the Philippine Islands securities satisfactory to the Insurance Commissioner, consisting of bonds of the United States or of the Philippine Islands or of the city of Manila or of municipalities in the Philippine Islands authorized by law to issue bonds, or of the Government in which such company is organized, or other good securities to the actual market value of one hundred thousand pesos. Provided, That if a company organized or existing under the laws of any government outside of the United States and the Philippine Islands shall have made a deposit with the Insurance Department of some one of the States of the United States of securities of the character above described to the actual market value of at least four hundred thousand pesos, in exclusive trust for the benefit and security of all the company's policyholders and creditors in the United States and its possessions, such deposit shall be held to be in lieu of the deposit required by this section; And, provided further, That it shall be a sufficient compliance with the provisions of this section if the deposit herein required be made with the Chief of the Bureau of Insular Affairs of the War Department at Washington or with a safe deposit company designated by that officer, which company shall agree to hold the securities so deposited subject to the control of the Chief of the Bureau of Insular Affairs as the representative of the Insurance Commissioner of the Philippine Islands." DOMESTIC COMPANIES-Domestic companies may be formed, but shall not adopt the name of any existing company transacting a similar business. or any name so similar as to be calculated to mislead the public. See "Capital." Provision is made for the investment of funds. See "Investments Prescribed." EXAMINATIONS-Companies must keep their records in such manner that the Insurance Commissioner may readily verify their statements, and ascertain whether they are solvent and have complied with the provisions of the law. He must examine each domestic company annually, and whenever he considers it advisable. Insurance Law, Sec. 175. "If the Insurance Commissioner is of the opinion upon examination or other evidence that any foreign or domestic insurance company is in an unsound condition, or that it has failed to comply with any provision of law obligatory upon it, or that its condition is such as to render its proceedings hazardous to the public or to its policyholders or that its actual assets exclusive of its capital are less than its liabilities, including unearned premiums and reinsurance reserve, the Insurance Commissioner is authorized, subject to appeal to the Secretary of Finance and Justice, to revoke or suspend all certificates of authority granted to such insurance company, its officers or agents, and no new business shall thereafter be done by such company or for such company by its agents in the Philippine Islands while such revocation, suspension or disability continues or until its authority to do business is restored by the Insurance Commissioner. The decision of the Secretary of Finance and Justice in all such cases shall be final." GENERAL PENALTIES-Insurance Law, Sec. 203. "Any person who knowingly violates any provisions of this chapter for which no penalty is provided, shall upon conviction be punished by a fine not exceeding five hundred pesos or by imprisonment not exceeding five months, or both, by such fine and imprisonment in the discretion of the court." IMPAIRMENT—See “Examinations." INVESTMENTS PRESCRIBED-Insurance Law, Sec. 197. "No insurance corporation shall loan any of its money or deposits except upon first mortgages or deeds of trust of unincumbered improved real estate, in cities and centers of population of municipalities in the Philippine Islands when the amount of such loan is not in excess of sixty per centum of the value of such real estate, or upon the security of first mortgages or deeds of trust of actually cultivated, improved and unincumbered agricultural lands in the Philippine Islands when the amount of such loans is not in excess of forty per centum of the value of such land, or upon bonds or other evidence of debt of the Government of the United States, or of the Philippine Islands, or of the City of Manila, or of municipalities in the Philippine Islands authorized by law to issue bonds, or such other securities, deposited as collateral, as may be approved by the Insurance Commissioner; Provided, however, That a life insurance corporation may loan its money upon the security of a policy to an amount not exceeding the net reserve value of the policy at the time said loan is made." Sec. 198. "No loan by any insurance corporation on the security of real estate shall be made unless the title to such real estate shall have first been registered in accordance with the Land Registration Act, or shall be a titulo real duly registered, or have been previously registered under the provisions of the Mortgage Law; that is, under the system of registration established by the laws in force on the date of the passage of Act numbered 496, entitled 'The Land Registration Act."" Sec. 199. "It shall be the duty of the officers of the corporation to |