JOHN WALTER SMITH, ESQ., GOVERNOR.

455

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.
Fourth. And it shall be the duty of the Insurance Commis-
sioner, after having ascertained the amount of the net values
of all of the policies in force, to see that the company has that
amount in safe legal securities of the description and character
hereinafter provided for in this article, 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 busi-
ness in this State has not on hand, after deducting all debts
and claims against it, exclusive of capital 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 publish the
fact that the existing condition of the affairs of such company
is below the legal standard of solvency established by this
State, and he shall require the company at once to cease doing
new business, and he shall immediately institute such proceed-
ings as are necessary to protect the rights of all persons inter-
ested in said company ; 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 tire, marine or inland insurance
business. Fifth. It shall be the duty of the Insurance

CHAP. 338

Commissioner, after he has notified a life insurance com-
pany, organized under the authority of this State, to
cease doing new business on account of 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 said company
is in such a condition as to fall below the legal standard of
solvency established by this State, then in that event the said
Insurance Commissioner shall not permit the said company
to continue in the control of its business; and it is hereby
made his duty to at once institute the necessary proceedings
for the protection of its policy holders in accordance with the
laws of this State, and to publish the results of the examina-
tion of the affairs of such company, whenever he may deem
it for the interest of the public so to do, in one or more papers
published in this State ; provided, however, in case it shall
appear that there is no fraud or gross incompetency or reckless-
ness in the management of said company, he may give the

Examination
of affairs
to he made