lodge system exclusively, having ritualistic work and ceremonies in their societies, lodges, or councils, and all mutual or benefit associations, organized or formed and composed of members of any such society, lodge or council exclusively, are exempt from the provisions of all the insurance laws of this state.

Legislation § 630. Added by Stats. 1907, p. 164. For original code § 630, see ante, § 591. See ante, tit. "Legislation Article XVI."

§ 631. Right of action against commissioner. If at any time the insurance commissioner revokes the certificate of authority theretofore granted to any insurance company or refuses to grant a certificate of authority to any insurance company, 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 of the facts de novo without regard to the determinations previously made by the commissioner. In the trial of such actions all of the provisions of the Code of Civil Procedure, not inconsistent herewith, shall be applicable.

Legislation § 631. Added by Stats. 1907, p. 164. For original code § 631, see ante, § 592. See ante. tit. "Legislation Article XVI."

§ 631a. Publication of notice of withdrawal. Whenever any insurance company shall have withdrawn from business in this state, and whenever for any reason the insurance commissioner shall have revoked or canceled the certificate of authority authorizing any insurance company to do business in this state, the insurance commissioner shall cause to be published, in each of two daily newspapers, one published in San Francisco and one published in Sacramento, a notice of such revocation or of such withdrawal. The expense of such publication shall be paid in advance by the insurance company withdrawing or whose certificate shall have been so revoked.

Legislation § 631a. Added by Stats. 1907, p. 165. See ante, tit. "Legislation Article XVI."

§ 632. District attorney to be notified of penal offense. Whenever the insurance commissioner ascertains that any insurance company, or any of its agents, officers or employees, or any other person has been guilty of violating any of the penal statutes of this state, the commissioner shall certify such facts to the district attorney of the county in which such offense was committed. Such offenses shall be prosecuted and tried in all respects as provided in the Penal Code. For the purpose of evidence the commissioner shall furnish to the district attorney, without eost to the county, certified copies of any papers or records of the office of the commissioner.

Legislation § 632. Added by Stats. 1907, p. 165. For original code § 632, see ante, § 593. See ante, tit. "Legislation Article XVI."

§633. Agents must file duplicate power of attorney. No person shall in this state act as the agent or solicitor of any insurance company doing business in this state until he has produced to the commissioner, and filed with him, a duplicate power of attorney from the company, or its authorized agent, authorizing him to act as such agent or solicitor.

Upon filing such power, the commissioner shall issue a license to him to act as such agent or solicitor for such company, if such company has received a certificate of authority from such commissioner to do business in this state. Such license shall continue in force until July first after the date thereof, but must be, and shall be, sooner revoked upon application of the company or its authorized agent. Such license may be renewed from time to time, for an additional period of twelve months, on production by the holder to the commissioner of a certificate from the company that such person's authority as such agent or solicitor continues. The commissioner shall keep an alphabetical list of the names of the persons to whom such licenses shall be issued, with the date of the license and renewal, and the name of the company for whom such person is working.

Agent upon whom process may be served: See ante, § 616.

Legislation § 633. 1. Added by Code Amdts. 1873-74, p. 66. 2. Amended by Code Amdts. 1880, p. 90. 3. By Stats. 1893, p. 116. 4. Repealed by Stats. 1907, p. 141, in repealing Article XVI. 5. Present section enacted by Stats. 1907, p. 165. See ante, tit. "Legislation Article XVI."

§ 634. Registration of policies of life insurance companies. It shall be lawful for any company or corporation transacting the business of life insurance in this state to register with the insurance commissioner its policies; provided, that any company electing to register any of its policies shall thereafter be required to register each policy issued by it so long as it continues to register any of its policies. Such registration shall show the name and age of the insured, number and date of the policy and the kind and amount of insurance in each case. Each policy thus registered shall have upon its face a certificate substantially in the following words: "This policy is registered and the reserve is deposited as required by section six hundred thirty-four of the Political Code of California," which certificate shall be signed by such commissioner and sealed with the seal of his office. For each such registration certificate, the company must pay a fee of twenty-five cents. Upon registering such policies from time to time, the company must deposit with the commissioner as a special deposit for the benefit of such registered policies, securities of the denominations stated in section four hundred twenty

one of the Civil Code as permissible for the investment of the capital and accumulations of insurance companies. Such deposit must be in an amount equal to the full net value of all policies registered up to the time of making the deposit, and must at all times be equal to such net value of all registered policies. Upon receipt of such securities, the commissioner must immediately deposit them in the state treasury, in accordance with the provisions of section six hundred eighteen of the Political Code, where they must remain as a special security for the benefit of such registered policies. Such company may at any time withdraw any excess of securities above the net present value hereinbefore specified, upon satisfying said commissioner by written proof that such excess exists, and shall be allowed to receive the interest on all securities deposited, and to exchange such securities by substituting other securities of the character in which, by the laws of this state, it may invest its funds. Should any such company thus registering poli

eies thereafter become insolvent, the insurance commissioner shall have full authority to reinsure all or any part of such registered policies and may use the securities thus deposited for such purpose. [Amendment approved 1915; Stats. 1915, p. 1547.]

Legislation § 634. 1. Added by Code Amdts. 1877-78, p. 20. 2. Amended by Stats. 1905, p. 151. 3. Repealed by Stats. 1907, p. 141, in repealing Article XVI. 4. Present section enacted by Stats. 1907, p. 166. 5. Amended by Stats. 1915, p. 1547. See ante, tit. "Legislation Article XVI."

§ 634a. Definition of certain words. The word company as used in this title includes every association, corporation, firm, or person transacting or desiring to transact any kind of insurance business under the laws of the state of California; provided, that no part of this act shall be held to apply to any company organized under an act entitled "An Act to provide for the organization and management of county fireinsurance companies," approved April first, eighteen hundred and ninetyseven, or to any corporation doing or transacting the business of mutual insurance on the assessment plan as defined in section four hundred and fifty-three d of the Civil Code of the state of California. The words "capital stock" as referred to in this title shall be deemed to include the capital of any person, firm, or association.

Legislation § 634a. Added by Stats. 1907, p. 166.

§ 634b. Penalties payable on demand. All fines, taxes, assessments, and penalties provided for in this title shall be due and payable on the demand of the insurance commissioner. If the same are not paid within ten days after such demand is made, then the insurance commissioner shall institute an action in the name of the people of the state of California for the purpose of recovering such fines, penalties, and taxes, or either, as the case may be. All such actions shall be subject to all the provisions of the Code of Civil Procedure, which may be applicable thereto.

Legislation § 634b. Added by Stats. 1907, p. 166. See ante, tit. "Legislation Article XVI."

§635. [No section of this number.]

§ 635a. Investment company defined. Every person, corporation, company, association, copartnership or individual in the state of California now engaged in or that shall hereafter engage in the business of placing or selling bonds, debentures or certificates of investment by whatsoever name said bonds, debentures or certificates of investment may be known or designated, when such business is conducted on the partial payment or installment payment plan, or in placing or selling any species of bonds, debentures or certificates of investment, on the partial payment or installment plan, wherein or whereby the holder or holders of said bond, debentures or certificates of investment are or may become entitled to claim and receive from such person, corporation, company or association a return, either at a definite or indefinite time, in cash, or in merchandise, or any property, for the partial payments or installments of money so paid, and wherein or whereby the holder may be subject to a fine or forfeiture as a penalty for nonpayment of said partial

payments or installments, is hereby declared to be an investment company under the provisions of this act.

Note. This and the following eleven sections relating to investment companies were added to the code March 18, 1905, Statutes 1905, page 156, Although they related to a new subject-matter, these sections were not added as a new article. Ordinarily, therefore, they would become a part of article XVI, this being the only article to which they could be added. The whole of article XVI was repealed in 1907, Statutes 1907, page 141, and a new article XVI was substituted in its place. If these sections were part of the original article XVI, it follows that they were repealed when the original article XVI was repealed. As it was believed that these sections were a part of the original article XVI and were repealed when it was repealed, they were omitted from the code of 1909. It appears, however, that there was no § 635 in the original article XVI, and as the new sections began with § 635a, the numbering of the new sections was not consecutive with the numbering in the original article XVI. In addition, the original article related to insurance commissioner, while the new sections related to investment companies. On this account it has been claimed that these sections were not repealed and they were incorporated as being in force by C. F. Curry, former secretary of state, in his book containing the corporation laws of California. Owing to the uncertainty regarding these sections and the doubt that has arisen as to whether they are in force or not, they have been inserted here.-Ed.

Legislation § 635a. Added by Stats. 1905, p. 156.

§ 635b.

Investment companies not licensed by bank or other commissioners. Deposit with state treasurer cash or securities. Every cor poration, company, association, copartnership or individual now engaged in, or that shall hereafter engage in business in this state as an investment company as hereinbefore defined, and not licensed by nor under the supervision of the bank commissioners, building and loan commissioners or insurance commissioner, that shall place or sell any bond or bonds, debenture or debentures, certificate or certificates of investment on the partial payment plan whereby the holder or holders of such bond or bonds, debenture or debentures, or certificate or certificates of investment are or may become entitled to claim and receive from such corporation, company or association, a return, either at a definite or indefinite time, in cash, or in merchandise, or in property, for the partial payments or installments of money so paid and wherein or whereby the holder may be subject to a fine, or penalty of forfeiture for nonpayment of said partial payments or installments, is hereby required to deposit within sixty days after the passage of this act, in cases of corporations, persons, companies or associations now existing and doing business, or before commencing business in cases of persons, corporations, companies or associations not now engaged in business, for the security of the holder or holders of the bonds, debentures or certificates issued by it, with the treasurer of the state of California, in cash, or in securities to be approved by said treasurer, the sum of five thousand dollars ($5,000), and in addition thereto shall deposit semi-annually, with the treasurer of the state of California, in cash, or securities to be approved by said officer, in the manner aforesaid, ten per cent of all premiums received on the sale of such bonds, deben

tures or certificates, until the sum so deposited shall amount to the sum of one hundred thousand dollars.

See note to § 635a.

Legislation § 635b. Added by Stats. 1905, p. 157.

§ 635c. Articles of incorporation to be filed with secretary of state. What to contain. Every investment company as herein defined now doing business in the state of California shall, within sixty days after the approval of this act, and every investment company hereafter organized to carry on the business of an investment company as hereinbefore defined, shall, prior to engaging in such business, in addition to making such deposit, file with the secretary of state a duly authentieated copy of its articles of incorporation, charter or other instrument authorizing it to do business and shall pay to the secretary of state the fees provided by law to be paid such officer for filing articles of incorporation within this state for a capital stock of like amount, the same to be accompanied with a statement showing

(a) The name of the corporation, company, association, copartnership or individual;

(b) The place where the principal business of the company, corporation, association, copartnership or individual within this state is or is to be carried on;

(e) The amount of capital stock of the corporation, association or company, and the amount of paid-up capital stock;

(d) The names and residences of the incorporators and its stockholders at the time when said statement is filed, and the name of its officers and date 'when their terms will expire;

(e) The name and address of the officers or representative within the state upon whom process can be served;

(f) A statement of the premiums received from the sale of bonds, debentures or certificates of investment during the preceding six months; which statement shall remain a public record in said office.

See note to § 635a.

Legislation § 635c. Added by Stats. 1905, p. 157.

§ 635d. Duty of state treasurer. Duty of attorney-general. The treasurer of the state of California shall whenever such fact is brought to his knowledge notify the attorney-general of the noncompliance of any person, company, corporation or association doing business as an investment company as herein before defined in the state of California with the provisions of this act, and the attorney-general shall immediately after receiving such notification commence an action against such corporation, company or association in the name of the people of the state of California:

(a) To dissolve such corporation, company or association, if incorporated or organized under the laws of the state of California;

(b) To enjoin and restrain such person, corporation, company or association from doing business within the state of California, if an individual or if incorporated and organized at any place without this state. See note to §.635a.

Legislation § 635d. Added by Stats. 1905, p. 158.