Chapter 12. To define and classify health, accident, and death benefit companies and associations operating in the District of Columbia, and to amend section six hundred and fifty-three of the Code of Law for the District of Columbia
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CHAP. 12.— An Act To define and classify health, accident, and death benefit companies and associations operating in the District of Columbia, and to amend section six hundred and fifty-three of the Code of Law for the District of Columbia. August 15, 1911.[[S. 2495](/us/bill/62/s/2495).][[Public, No. 12](/us/pl/62/12).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, * District of Columbia Code.Insurance companies.Vol. 31. p. 1292. amended.
That the Code of Law for the District of Columbia be, and the same is hereby, amended by striking out section six hundred and fifty-three thereof and inserting in lieu thereof the following: " “health, accident, and life insurance companies or associations. “Sec. 653. Health, accident, and life insurance companies or associations defined. Every corporation, joint-stock company, or association not exempt herein, transacting business in the District of Columbia, which collects premiums, dues, or assessments from its members or 17from holders of its certificates or policies, and which provides for the payment of indemnity on account of sickness or accident, or a benefit m case of death, shall be known as ‘health, accident, and life insurance companies or associations.’ After ninety days from the passageCapital, etc., required. of this Act no such company or association shall transact business within the District of Columbia unless it shall have in assets or in capital stock fully paid up in cash, or in both together, not less than twenty-five thousand dollars as a capital or guarantee fund; which assets may be invested in United States, State, county, municipalInvestment of assets. bonds, and bonds of the District of Columbia, or railroad bonds; but investments in the bonds of railroads shall be limited to the bonds of those railroads which have paid dividends on their capital stocks for the ten years immediately previous to the date of the investment; or in improved real estate, or in first mortgages on improved real estate; but no loan on real estate shall be made for an amount exceeding seventy per centum of its assessed value, such investments to be approved by the superintendent of insurance of the District of Columbia.
No such health, accident, and life insurance company orLimit of policies. association, now or hereafter transacting the business of health, accident, and life insurance, or either or all said kinds of insurance, in the District of Columbia shall issue policies or certificates providing, either singly or in aggregate, a greater accident or death benefit than five hundred dollars, or a greater weekly indemnity than twenty dollars, on any one person unless such company or association has in assets or in capital stock fully paid up in cash, or in both together, not less than one hundred thousand dollars invested and approved as aforesaid.
Every such company or association shall pay to the collectorAnnual tax on receipts. of taxes for the District of Columbia a sum of money, as tax, equal to one per centum of all moneys received from members of policy or certificate holders within the District of Columbia, said tax to be paid on or before the first day of March of each year on the amount of such income for the year ending December thirty-first next preceding; and shall also file annually with said superintendent of insurance,Annual report required. on or before the first day of March of each year, a sworn statement, on blanks furnished by said superintendent of insurance, showing its true financial condition, income, disbursements, assets, and liabilities on the thirty-first day of December next preceding, and such other information as said superintendent of insurance may require; andFee for tiling. shall pay to the said collector of taxes ten dollars for filing such statement.
Said superintendent of insurance shall examine from time toExaminations by superintendent of insurance. time and at least as often as once a year all companies or associations described herein; and when he finds the capital stock of any such company impaired or its assets reduced in value to an amount less than required by the provisions hereof he shall at once give notice of said fact to said company or association, and unless said impairmentSuspension if assets impaired. is made good within sixty days after said notice, it shall be the duty of said superintendent to revoke or suspend the license of said company or association until such impairment shall have been made good; and any company or association that issues policies or certificatesPenalty for issuing policies if suspended, etc. of insurance as described herein without a license from said superintendent or during a suspension thereof, as herein provided, shall be fined not less than twenty dollars nor more than one hundred dollars per day: *Provided,* That if any such company or association*Provisos*.Appeal from superintendent. shall feel aggrieved by the decision of said superintendent concerning the investment or impairment of its assets or capital stock, it shall have the right to appeal, within ten days, from the decision of said superintendent to the Board of Commissioners of the District of Columbia, who shall prescribe rules and regulations for the hearing of said appeal, and their decision shall be final: *Provided also,* That whenIssue of license. any such company or association shall have complied with the provi-18sions contained herein, the superintendent of insurance shall issue to it Fraternal associations not affected.Vol. 31. p. 1310.a license to transact its business in the District of Columbia: *Provided, however,* That nothing contained herein shall interfere with or abridge the rights of any fraternal beneficial association licensed to transact business under subchapter twelve of chapter eighteen of the Code of Law for the District of Columbia, or incorporated by special Act of Mutual relief associations, not for profit, exempt.Congress: *And provided further,* That nothing contained herein shall apply to any relief association, not conducted for profit, composed solely of officers and enlisted men of the United States Army or Navy, or solely of employees of any other branch of the United States Government service, or solely of employees of any individual, company, firm, or corporation.
” " Sec. 2. Inconsistent laws repealed.*Provisos*.Special exceptions.Vol. 31, pp. 1289–1294. That all Acts and parts of Acts inconsistent herewith be, and the same are hereby, repealed: Provided, That nothing herein contained shall repeal or affect the other provisions of subchapter five of chapter eighteen of the Code of Law for the District of Columbia regulating foreign corporations, or corporations, associations, or companies who are nonresidents of the District of Columbia (to whom Vol. 31, p. 1292.the provisions of this Act shall also be applicable), or the provisions of section six hundred and fifty-two of said code relating to inquiry into the affairs of District companies.
Approved, August 15, 1911.