penalty, and not in good faith, shall, in case of non-recovery from the company, be liable to a similar penalty. Judgment for attorneys' fees. against insurance company when losing case. Act of 1901, Chap. 141. No officer or director of any domestic insurance company may accept any fee, brokerage or commission on account of any loan, sale, etc., on behalf of such company. MUTUAL COMPANIES-Chap. 463, Acts 1907, provides for the organization and operation of county mutual fire insurance companies. Such a company is required to have bona fide applications by not less than twenty-five citizens for not less than $50,000 of insurance, not more than $1000 of any one risk being subject to one fire, before it can be licensed to do business. Such company cannot do business outside of the county of its domicile until it has $300,000 of insurance in force. The premium liability of policyholders in county mutuals is unlimited. Chap. 461, Acts of 1907, provides for the organization and operation of State mutual fire insurance companies. Before a license is issued to a State mutual fire insurance company, it is required to have bona fide applications for not less than $250ooo of insurance. A State mutual may limit the premium liability of the policyholder to the cash annual premium and in addition an equal amount as a contingent premium. Both the cash and the contingent premium are required to be plainly written in the policy. In lieu of the amount of bona fide applications a State mutual fire insurance company may be organized with a paid up guaranty capital of not less than $25,000. The guaranty capital is required to be retired when the surplus earnings of the company are equal to the amount of guaranty capital, provided the company has at all times either $25,000 of guaranty capital, or an equal amount in net surplus. Chap. 462, Acts 1907, provides for the admission and regulation of mutual fire insurance companies of other States. Before such company can be licensed to do business in Tennessee it is required to have and maintain in admitted assets over and above liabilities, including reinsurance reserve, not less than $50,000, and in addition it must have and maintain contingent assets of not less than $150,000, or, in lieu of the above, must have and maintain a net cash surplus of not less than $100,000. Such a company is required to file copy of charter, financial statement, power of attorney and appoint agents as stock companies are required to do. PRELIMINARY DOCUMENTS-Company must file a certified copy of charter, a certificate of the Insurance Commissioner of the State where located, to the effect that it has authority to do the character of business in such State it desires to do in Tennessee (required annually, with annual statement), and a verified statement showing its condition December 31 preceding. Company must also file a copy of its charter with the Secretary of State. Certificate of deposit. Power of attorney, executed at home office, on Department blank, authorizing Commissioner of Tennessee to acknowledge service of process. Certified copy of deed of trust and appointment of United States trustees. Certified copy of power of attorney to United States managers. PUBLICATION-None obligatory. When assets are published, liabilities must be made equally conspicuous; and no capital except that paid up shall be advertised. Penalty for violation, $100 to $500. RECIPROCAL INSURANCE-Chap. 160, Sec. I. "When consistent with the context, and not obviously used in a different sense, the term 'company' or 'insurance company,' as herein used, includes all corporations, associations, partnerships, or individuals engaged as principals in the business of insurance." Individuals, partnerships and corporations of Tennessee, designated as subscribers, are, by law of 1915, authorized to exchange reciprocal or inter-insurance contracts with each other or with individuals, partnerships and corporations of other States and countries providing indemnity among themselves from any loss which may be insured against under other provisions of the law, excepting life insurance. Contracts may be executed by an attorney acting for such subscribers. Subscribers must make a declaration as set forth by law; and stating that applications have been made for insurance upon at least seventy-five separate risks aggregating at least $1,500,000; must deposit with the attorney for payment of losses not less than $25,000. Insurance Commissioner must be appointed as agent for service of process. Attorney must file under oath, with the Insurance Commissioner, statement showing maximum amount of indemnity upon any single risk. The reserve fund in cash or convertible securities must be maintained equal to one-half of the net annual deposits collected and credited to the accounts of the subscribers on policies in having one year to run and pro rata on longer contracts. This reserve fund shall at no time be less than $50,000. The annual report must be made showing the exchange's condition. Attorney filing annual report shall pay as an annual license fee $30 and a tax of two and one-half per cent of the gross premium or deposits received from Tennessee subscribers during the calendar year, deducting all amounts returned to subscribers or credited to their ac counts. RECIPROCAL LAW-Chap. 160, Sec. 20. "That whenever the existing or future laws of any other State of the United States shall require insurance companies incorporated by, or organized under, the laws of this State, or the agent thereof, any deposit of securities in such State for the protection of policyholders, or otherwise, greater than the amount required for similar companies of other States by the then existing laws of this State, then in every such case all companies of such States establishing, or having heretofore established, an agency or agencies, in this State, shall be, and are hereby required, to make the same deposit for a like purpose with the Treasurer of the State, and to pay into the treasury of this State the taxes, fines, penalties, license fees, or otherwise, an amount equal to the amount of such charges and payments imposed by law of such State upon companies of this State and the agents thereof." REINSURANCE-No statutory prohibition of reinsurance in unauthorized companies, but the publishers are informed by the Insurance Commissioner that it is contrary to the rulings of the Department for a company licensed to do business in Tennessee to reinsure its risks located in Tennessee in some company that is not licensed to do business in the State. If an authorized company reinsures in other authorized companies, it is permitted to deduct from gross premiums, return premiums to policyholders and also the amount paid to authorized companies for reinsurance premiums. REINSURANCE RESERVE-Fifty per cent of premiums received on risks having not more than one year to run, and pro rata for longer terms. RESIDENT AGENTS-Chap. 430, Sec. 1. "That no fire, fire and marine or marine insurance companies or associations not incorporated under the laws of this State, authorized to transact business herein, shall make, write, or cause to be made, written or placed, any policy, duplicate policy or contract of insurance of any kind or character of any general or floating policy upon property situated or located in this State, except after said risk has been approved in writing, or by a local agent who is a resident of this State, regularly commissioned and licensed to transact insurance business herein, who shall countersign all policies so issued or contracts of insurance, and receive full commission thereon when the premium is paid. * * *" Railroad rolling stock and property in transit are excepted. The AttorneyGeneral ruled, in August, 1915, that the State was not concerned with the question of division of commissions. An affidavit that the resident agents' law has not been violated must be filed before company's license will be renewed. Penalty for violation, revocation of authority for at least one year. SEMI-ANNUAL STATEMENTS-See "Taxes." STANDARD POLICY-None. TAXES-Chap. 160, Sec. 19. "That each and every foreign insurance company doing business under the provisions of this act shall, in January and July of each year, report, under oath of the president and secretary, or other chief officer of such company, to the Insurance Commissioner, the total amount of gross premiums received in this State within the six months next preceding the first of January and July, or since the last return of such premiums were made by such company, and shall, at the same time, pay into the treasury of the State the sum of two dollars and fifty ($2.50) cents upon each $100 of said gross premiums so ascertained, which shall be in lieu of all other taxes." Deductions for return premiums and reinsurance premiums paid to authorized companies are allowed. Original writing companies are held responsible for all business written. Penalty for failure to make prompt and correct returns and payments, $500; for sixty days' failure, revocation of license until taxes and penalties are fully paid. Licensed brokers must pay the same tax on gross premiums as do authorized companies, and in the same manner and time. Each agent, including each member of an agency or firm, must pay $10 yearly in lieu of all other privilege taxes. Tax is for calendar year. Agents beginning business before April 1 pay $10; between April 1 and July 1, $7.50; between July 1 and October 1, $5; after October 1, $2.50. Companies of other States and countries which have ceased transacting new business in Tennessee, are required to pay taxes as long as any renewal premiums are received on business in the State. Credit is allowed for reinsurance in authorized companies as well as return premiums. A tax of one-half of one per cent on premium receipts of fire insurance companies is levied to cover expense of investigating fires. Chapter 541, Acts of 1907, prescribes that the two and one-half per cent tax on premiums shall be paid direct to the Insurance Commissioner, and shall be in lieu of all other privilege taxes. TAX STATEMENTS-To be filed in January and July. Reports to Secretary of State are due July 1. (See "Fees.") VALUED POLICY-See "Anti-Coinsurance." COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. CLINTON-For each agent, $10. DYERSBURG-For each agent, $10. MEMPHIS-Salvage Corps, 134 per cent on net premiums. NASHVILLE-For each agent, $10. NEWPORT For each agent, $10. CALENDAR-TENNESSEE Affidavit of compliance with Residents Agents Law must be filed State privilege tax on local agents is due. Semi-annual fire marshal tax is payable. Semi-annual tax statement must be filed. Semi-annual premium tax is payable. Annual statement must be filed (time may be extended to Certificate of compliance is required. Company license must be secured and also copy of certificate for each local agent. Tax on capital stock is payable to Secretary of State. Capital stock tax statement to be filed with Secretary of State. Semi-annual tax statement must be filed. Semi-annual premium tax is payable. TEXAS. STATE REQUIREMENTS. ADJUSTERS' LICENSES-The Commissioner rules that adjusters are agents of the companies and as such must be licensed. AGENTS DEFINED-Chap. 21. Sec. 423, Digest, 1916. "Any person who solicits insurance on behalf of any insurance company, whether incorporated under the laws of this or any other State or foreign government, or who takes or transmits other than for himself any application for insurance, or any policy of insurance, to or from such company, or who advertises or otherwise gives notice that he will receive or transmit the same, or shall receive or deliver a policy of insurance of any such company, or who shall examine or inspect any risk, or receive or collect or transmit any premium of insurance, or make or forward any diagram of any building or buildings, or do or perform any other act or thing in the making or consummating of any contract of insurance for or with any such insurance company other than for himself or who shall examine into or adjust or aid in adjusting any loss for or on behalf of any such insurance company, whether any of such acts shall be done at the instance or request or by the employment of such insurance company, or of or by any broker or other person, shall be held to be the agent of the company for which the act is done or the risk is taken, so far as relates to all the liabilities, duties, requirements and penalties set forth in this act; provided, that the provisions of this act shall not apply to citizens of this State who arbitrate in the adjustment of losses between the insurers and the assured, nor to the adjustment of particular or general average losses of vessels or cargoes by marine adjusters who have paid an occupation tax of two hundred dollars for the year in which the adjustment is made; provided, further, that the provision of this act shall not apply to practicing attorneys-at-law in the State of Texas acting in the regular transaction of their business as such attorneys-at-law, and who are not local agents nor acting as adjusters for any insurance company." For definition of "general agent" see "Taxes." AGENTS' LICENSES-Agents must procure licenses, which expire on the last day of February. License required for each member of firm. Acting for unlicensed company renders agent personally liable for the same taxes as are paid by admitted companies, and to the holder of any policy issued through him by such company for any loss sustained thereunder, and to be fined $500 for the first, and $1000 for each subsequent offense, with imprisonment as an alternative, or both. Penalty for doing business without license, fine of $500 to $1000, and imprisonment for three to six months. Applications for licenses must be made by company officers, under seal, when agents are appointed. No license will be issued to an agency corporation. All agents' licenses are issued only to individuals. ANNUAL STATEMENTS-Must be filed with Commissioner of Insurance and Banking within sixty days after January 1, showing condition as of |