ART. 42. ] INSURANCE COMPANIES.

it is hereby made his duty to institute the necessary proceedings
for the protection of its policy-holders, in accordance with the laws
of this State, and to publish the result of the examination of the
affairs of such company, whenever he may deem it for the interest

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of the public so to do, in one or more papers published in this
State.

May publish
result of ex-
amination

Sixth. — For every company doing fire insurance business in this
State, he shall calculate the reinsurance reserve for unexpired fire
risks by taking fifty per cent, of the premiums received on all un-
expired risks that have less than one year to run, and a, pro rata of
all premiums received on risks that have one year or longer to run,
and in marine and inland insurance he shall charge all the premiums

Calculation of
reinsurance
reserve in fire,
marine, and
inland com-
panies.

received on unexpired risks as a reinsurance reserve; provided, that
the foregoing requirements of reinsurance reserve, when applied to
companies organized under the laws of foreign governments, shall
be calculated only upon the business of such company in the United
States, and only the assets of such company held and invested in
the United States shall be recognized as constituting the reserve
fund so required.

Proviso

Seventh. — Having charged against a company the reinsurance re-
serve, as above determined, for fire, inland, and marine insurance,
and adding thereto all debts and claims against the company, he
shall, in case he finds the capital stock of the company impaired to

In case capital
stock impaired

the extent of twenty five per cent., give notice to the company to
make good its whole capital stock within sixty days, and if tins is
not done he shall requite the company to cease to do new business
within this State, and shall thereupon, in case the company is or-
ganized under the authority of this State, immediately institute such
legal proceedings as are necessary to protect the rights of all per-
sons interested in said company.

Notice to make
the same good.

Eighth. Once, at least, during his term of office, and oftener if be
should deem it expedient so to do, the insurance commissioner shall
visit the principal office of every insurance company organized under
the laws of this State, for the purpose of examining its affairs. At
such time he shall have free access to its books and papers, and shall
thoroughly inspect and examine its affairs to such extent, and make
such inquiries as may be necessary to ascertain its condition and
ability to fulfil its engagements, and whether it has complied with

Commissioner
to Inspect each
company at
least once dur-
ing term of
office.

all the provisions of law applicable to its transactions. And when-
ever the insurance commissioner may have reason to doubt the sol-
vency, or the correctness of the statement of any company not or-
ganized under the laws of this State, he shall communicate such
doubts, and the reasons for them, to the insurance commissioner or
other proper officer of the State in which such company is located.
And if he is not satisfied, from the information obtained from such
insurance commissioner or other officer, or from the officers of the
company, that the condition of the company is such as to warrant
him in permitting it to transact business in this State, under the pro-

Proceedings
where state-
ment of foreign
company
doubted.