3t52

Proviso.

INSURANCE COMPANIES. [ART. 42.

ations have been properly made on sound and recognized prin-
ciples, and legal basis not less than that prescribed above, provided,
that the company shall furnish to the insurance commissioner of this
State a certificate from the insurance commissioner of such State,
setting forth the value, calculated on the data designated above, of
all the policies in force in the company on the previous thirty first
day of December, and stating that said company is fully authorized
to do business in its own State; and every life insurance company
doing business in this State during the year for which the statement
is made, that fails promptly to furnish the certificate aforesaid, shall
be required to make a full detailed list of its policies and securities
to the insurance commissioner of this State, who shall thereupon
cause the same to be valued at the expense of said company.

Assets of com-
pany to be equal
to net values of
policies

Fourth. — And it is hereby made the duty of the insurance com-
missioner, after having ascertained the amount of the net values of
all the policies in force, to see that the company has that amount in
safe legal securities of the description and character hereinafter pro-
vided for in this act, after all its other debts and claims against it,
including those resisted by the company, but exclusive of capital
stock, have been provided for; and in case it is found that any life
insurance company doing business in this State, has not on hand,
after so deducting all debts and claims against it, exclusive of capi-
tal stock, an amount of assets of the character hereafter prescribed
in this act, equal in value to the net present value of all its policies
in force, it shall be the duty of the insurance commissioner to pub-
lish the fact that the existing condition of the affairs of the company

If below legal
standard of sol-
vency to cease
doing new busi-
ness and pro-
ceedings insti-
tuted
Not to insure
lives When
authorized by
charter to do
fire, marine,
and inland
insurance

is below the legal standard of solvency established by this State,
and he shall require the company at once to cease doing new busi-
ness; and he shall immediately institute such proceedings as are
necessary to protect the rights of all persons interested in said com-
pany, and it shall be his duty to see that no company is permitted
to insure lives in this State whose charter authorizes it to do fire,
marine, or inland insurance business.
Fifth. — It shall be the duty of the insurance commissioner, after
he has notified a life insurance company, organized under the
authority of this State, to cease doing new business on account of

Proceedings in
case solvency is
below legal
standard

its condition being below the legal standard of solvency established
by this State, at once to cause a rigid examination in regard to all
the affairs of such company In case it shall appear that there is no
fraud or gross incompetency or recklessness in the management, he
may, upon publishing the facts in the case, permit such company to
continue in charge of its business for one year; provided, there is,
in his opinion, reason to believe that the company may eventually
be able to re-establish its solvency according to the legal standard.
At the expiration of such year he may renew the permission, in
case, on examination, he is satisfied that the company is likely to
retrieve its condition; but in case the insurance commissioner does
not permit the company to continue in the control of its business,