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and that the name of the corporation is not the same as that
of any other corporation of this or other states, as indicated
by the insurance department reports in his office; nor must
the commissioner approve any name or title so closely resem-
bling another as to mislead the public.

[No legal existence for one year, unless, etc.] No corpora-
tion formed hereunder has legal existence after one year
from the date of its articles, unless its organization has been
completed and business commenced; nor must any corpora-

281



§§453f, 453g CIVIL CODE. [Div.I,Pt.IV.

tion or individual solicit, or cause to be solicited, any busi-
ness, until such corporation has complied with the provisions
of section six hundred and thirty-three of the Political Code.
[Constriictiou.] Nothing contained in this chapter shall be
construed to exempt any corporation from the provisions of
section two hundred and ninety-six and two hundred and
ninety-nine of this code.

History: Enacted March 20, 1905, Stats, and Amdts. 1905, pp.
418-419. See introductory note to this chapter. A codification
of § 2 Act March 19, 1891, Stats, and Amdts. 1891, pp. 126-127.

See Kerr's Cyc. C. C. for 8 pars, annotation.

As to general requisites of articles of incorporation, see
Kerr's Cyc. C. C. § 290 and note.

As to many niiscellaneous matters of insurance, " see note
§ 414, ante.

Capital required of insurance companies generally. — See
Kerr's Cyc. C. C. § 419 and note.

Division of reserve fund. — See Kerr's Cyc. C. C. §453h and
note pars. 2, 3.

Emergency — Cessation of business. — See Kerr's Cyc. C. C.
§ 453h and note par. 4.

Insolvency and failure to make up capital — Proceedings. —
See Kerr's Cyc. Pol. C. §§ 600-602 and notes.

§453f. PRE-EXISTIXG CORrORATIO>, RIGHT OF TO
REINCORPORATE. Any existing corporation engaged in the
business of life, health, accident, or endowment insurance on
the assessment plan may reincorporate under the provisions
of this code and chapter, but is not obliged to do so, and
may, without such reincorporation, exercise the rights, pow-
ers, and privileges conferred by this chapter.

History: Enacted March 20, 1905, Stats, and Amdts. 1905, p.
419. See introductory note to this chapter. A codification of
§ 3 Act March 19, 1891, Stats, and Amdts. 1891, p. 127.

As to many miscellaneous matters of insurance, see note
§ 414, ante.

Continuance of existence under provisions of code. — See
Kerr's Cyc. C. C. § 287 and note.

§453^. t CONTRACTS OF INSURANCE; CONTENTS AND
EFFECTS OF. Every contract of insurance issued by such

282



Tit.II,ch.VI.] CONTRACTS, CONTENTS. § 453h

corporation must specify the sum or sums to be paid upon
the happening of the contingency insured against, and when
such payments must be made. Unless the contract is invali-
dated by fraud or by breach of its conditions, the corporation
is obligated [1] to pay the beneficiary the amount or amounts
specified in its contract at the time or times therein named,
and [2] such indebtedness is a lien upon all the property of
such corporation, with priority over all indebtedness there-
after incurred, [3] except as hereinafter provided in case of
insolvency.

[Forfeiture of right to do business by failure to pay.] Fail-
ure to make such payment, within thirty days after notice,
at the home office, by mail, as provided by law, of a final
judgment, unless waiver is made by the beneficiary, consti- '
tutes a forfeiture of the right to do business.

History: Enacted March 20, 1905, Stats, and Anidts. 1905, p.
419. See introductory note to this cliapter. A codification of
§ 4 Act March 19, 1891, Stats, and Amdts. 1S91, p. 127.

See Kerr's Cyc. C. C. for 2 pars, annotation.

As to many miscellaneous matters of insurance, see note
§ 414, ante.

Insolvency — Failure to naake payment within thirty days.—
See Kerr's Cyc. C. C. § 4531 note par. 7.

Lien — None on emergency fund. — See Kerr's Cyc. C. C. § 4531i
and note par. 4.



§ 45311. RESEEVATIOJf AND EMERGENCY FUND. Every
domestic corporation, organized to do or doing business of
insurance on the assessment plan, must accumulate a reserve
or emergency fund, which must, at all times, be not less than
the largest benefit contracted to be paid by it to any one
person. Every corporation organized under the provisions of
this chapter must accumulate such fund within a year from
the date of its certificate of incorporation.

[Investment of reserve or emergency fund.] Such fund, to
the extent of the largest amount contracted to be paid by
any such corporation to any one person, must be invested and
deposited, as provided in section four hundred and fifty-three

283



§ 453i CIVIL CODE. [Div.I.Pt.IV.

e, with the right in the corporation to exchange any such
securities for others of equal value.

[Deposit part of fund.] The deposit required by section
four hundred and fifty-three e constitutes a part of the reserve
required by this action, at the option of such corporation.
When any such corporation discontinues -business, this fund
must be returned to such corporation, oi; disposed of as may
be determined by the superior court of the county in which
is its principal place of business.

History: Enacted March 20, 1905, Stats, and Amdts. 1905, p.
418. See introductory note to this chapter. A codification of
§ 5 Act March 19, 1891, Stats, and Amdts. 1891, pp. 127-128.

See Kerr's Cyc. C. C. for 5 pars, annotation.

As to many miscellaneous matters of insurance, see note
§ 414, ante.

Capital required of insurance companies generally.— See
Kerr's Cyc. C. C. § 419 and note.



§ 4531. FOREIGN CORPORATIONS. CONDITIONS PREC-
EDENT TO DO BUSINESS IN THIS STATE. Corporations
organized under the laws of any other state or country to
transact the business of mutual assessment insurance must,
as a condition precedent to transacting business in this state,
[1] comply with the provisions of sections four hundred and
five and four hundred and eight of this code, and [2] deposit
with the insurance commissioner of this state a certified copy
of its charter or other instrument required by its home
authorities; [3] a statement under oath, of [a] its president
or [I)] secretary, of its business for the preceding year, in
such form as may be required by the insurance commissioner
of this state; [I] an appointment of a general agent, service
upon whom binds the corporation; [5] a certificate that for
the next preceding twelve months it has paid in full the
maximum amount named in its contract of insurance; [6] a
certificate from the proper officer of its state or government
that like corporations of this state are legally entitled to do
business in such state or country; [7] copies of its contracts
of insurance and applications, which must show that the

284



Tit.II.ch.VI.] CONDITIONS PRECEDENT. § 453}

liabilities of its members are not limited to fixed premiums;
and [8] evidence, satisfactory to the insurance commissioner,
that the corporation has accumulated a fund equal to that
required of like corporations in this state, constituting a
reserye or surplus fund, held in trust for the benefit of its
contract-holders, and so invested and held as required by
the laws of the state or government under which such corpo-
ration was organized.

[License, issuance, renei^al, and revocation.] The insur-
ance commissioner must thereupon issue a license to such
corporation to do business in this state. This license must
be renewed annually, and may be revoked whenever it is
ascertained that the statements required to be made by this
section are not true. Upon such revocation, notice thereof
must be given by the insurance commissioner by publication
in some newspaper published in the city and county of San
Francisco, for two weeks, daily, and no new contracts must
be made by such company in this state.

[License, fees, taxes, and penalties.] When any other
state or country imposes any additional license, fees, taxes,
or penalties upon any corporation organized or doing busi-
ness under this chapter, like license, fees, taxes, or penalties
are imposed upon corporations of the same kind and their
agents of such state or country doing business in this state.

History: Enacted March 20, 1905, Stats, and Amdts. 1905, pp.
419-420. See introductory note to this chapter. A codification
of § 6 Act March 19, 1891, Stats, and Amdts. 1891, p. 128. As to
appointment of agent upon whom service may be made, see Act
April 1, 1872, Stats. 1871-2, p. 826.

See Kerr's Cyc. C. C. for 15 pars, annotation.

As to many miscellaneous matters of insurance, see note § 414,
ante.

Agent upon whom process may be served. — See Kerr's Cyc.
Pol. C. § 616 and note.

Conditions prescribed upon foreign companies. — See Kerr's
Cyc. Pol. C. §§ 622-624 and notes.

Securities required to be deposited. — See Kerr's Cyc. Pol. C.
§ 618 and note.

285



§§453j,453k CIVIL CODE. [Div.I.Pt.IV.

§453j. LIMITATIONS UPON RIGHT TO ISSUE CON-
TRACTS OF INSURANCE. No corporation doing business
under this cliapter, except accident or casualty corporations,
must issue a contract of insurance upon tlie life of any per-
son under fifteen nor over sixty-one years of age. Every
such contract of insurance must be founded upon written
application therefor, and, except where the application is for
health, accident, or casualty insurance only, or for one hun-
dred dollars life insurance or less, such application must be
accompanied by the report of a reputable physician, contain-
ing a detailed statement of his examination of the applicant,
showing the applicant to be in good health, and recommend-
ing the issuance of a contract of insurance.

[False or fraudulent statement by solicitor, etc.] Any
solicitor, agent, employee, examining physician, or other per-
son, making a false or fraudulent statement to any corpora-
tion doing business under this chapter, with reference to any
application for insurance, or for the purpose of obtaining any
money or benefit fi'om such corporation, is guilty of a misde-
meanor; and any person who makes a false statement of
any material fact or thing in a sworn statement as to the
death or disability of a contract-holder, in any such corpora-
tion for the purpose of procuring or aiding the beneficiary or
beneficiaries or contract-holder in procuring the payment of
a benefit named in the contract, is guilty of perjury.

History: Enacted March 20, 1905, Stats, and Amdts. 1905, pp.
420-421. See introductory note to this chapter. A codification
of Act Marcli 19, 1891, Stats, and Amdts. 1891, pp. 128-129.

§453k. EXEMPTIONS FROM ATTACHMENT AND EXE-
CUTION. The money, benefit, annuity, endowment, charity,
relief, or aid to be paid as provided by the contracts issued
by any corporation doing business under this chapter, is not
liable to attachment or other process, nor to be seized, taken,
appropriated, or applied by any legal or equitable process,
nor by operation of law, to pay any debts or liability of the
contract-holder or any beneficiary named thereunder.

286



Titll.ch.VI.] STATEMENT. § 4531

History: Enacted March 20, 1905, Stats, and Amdts. 1905, p.
421. See introductory note to this chapter. A codification of
§ 8 Act March 19, 1891, Stats, and Amdts. 1891, p. 129.

See Kerr's Cyc. C. C. for 2 pars, annotation.
As to many miscellaneous matters of insurance, see note
§ 414, ante.

§4531. STATEMEIVT TO BE FILED WITH THE INSUR-
ANCE COMMISSIONER; PROCEEDINGS TO BE TAKEN BY
HIM THEREON. Every corporation, whether domestic or for-
eign, doing the business of effecting insurance on the assess-
ment plan must, annually, on or before the first day of Feb-
ruary, file with the insurance commissioner, in such form as
he may prescribe, a statement of its affairs for the year end-
ing on the preceding thirty-first day of December. The insur-
ance commissioner, in person or by duly authorized deputy,
has the power of examination into the affairs of any domestic
corporation doing business or claiming to do business imder
this chapter, at any time, in his discretion, and must make
such examination at least once a year.

[Revoking authority to do business; i)rocedure.] If he,
after an examination of the affairs of a corporation, finds
that it is not doing its business in conformity to this chapter,
or that it is doing a fraudulent or unlawful business, or that
it is not carrying out its terms of contract, or that it cannot,
within three months from the date of notice of default, pay
its obligations, he must cite the president, secretary, man-
ager, or general agent of the corporation, or all of them,
to appear before him, stating the time and place, to show
cause why the authority of the corporation to do business
should not be revoked, and if cause is not shown, then he
must report the facts to the attorney-general of the state,
who must commence proceedings in the proper court to
restrain the corporation from doing any further business.

History: Enacted March 20, 1905, Stats, and Amdts. 1905, p.
421. See introductory note to this chapter. A codification of
§§ 9 and 10 Act March 19, 1891, Stats, and Amdts. 1891, p. 129.
Compare Act 1856, Stats. 1856, p. 752. See 81 C. 364, 22 P. 869;
129 C. 628, 633, 62 P. 191.

287



§§453m, 453n. CIVIL CODE. [Div.I.Pt.IV.

See Kerr's Cyc. C. C. for 12 pars, annotation.

As to directors being trustees upon dissolution of corpora-
tion, see Kerr's Cyc. C. C. § 400 and note.

As to many miscellaneous matters of insurance, see note
§ 414, ante.

Insolvency and failure to make up capital — Proceedings. — See
Kerr's Cyc. Pol. C. §§ 600-602 and notes.

§453111. LAPSING OF POLICIES. WHEN FORBIDDEN.

No policy or certificate issued by any corporation or associa-
tion doing business under tlie provisions of this chapter lapses
for the non-payment of any assessments, dues, or premiums,
unless the corporation or association has first mailed to the
insured under such policy or certificate, at his or her last
given post-office address, a notice setting forth the amount to
be paid, and the time the same is due and payable; and such
notice must be mailed at least fifteen days before the assess-
ment is due; provided, that such corporations doing business
under this chapter as collect specific amounts at specific
dates, as contained in the contract, are not compelled to send
such notices; and an aftida\it made by the officer, bookkeeper,
or clerk of any such corporation having charge of the mailing
of notices, setting forth the facts as they appear on the
records in the office of the said corporation, showing that
such notice was mailed and the date of mailing, is conclusive
evidence of the mailing of such notice.

History: Enacted March 21, 1905, Stats, and Amdts. 1905, pp.
421-422. See introductory note to this chapter. A codification
of § 11 Act March 19, 1891, Stats, and Amdts. 1891, pp. 129-130.

See Kerr's Cyc. C. C. for 2 pars, annotation.
As to many miscellaneous matters of insurance, see note
§ 414, ante.

§ 453n. FEES AND PENALTIES. The fees for filing state-
ments, certificates, or other documents required by this chap-
ter, or for any sei'vice or act of the insurance commissioner,
and the penalties for any violation of this chapter, must,
except as otherwise provided herein, be the same as provided
in the laws of this state relating to life insurance companies,
and must be disposed of as provided by such laws.

288



Titll.ch.VL] BILLS FOR EXPENSES. §§ 453o, 453p

History: Enacted March 20, 1905. Stats, and Amdts. 1905. p^
History. J^^i'd. PhaDter A codification of

422. See introductory note to t^"%^^^P^'^^„„.'^^ 130
I 12 Act March 19. 1891, Stats, and Amdts. 1891. p. 1^0-

§4530. INSURANCE COMMISSIONER TO PRESENT
BILLS FOR CERTAIN EXPENSES. For all lawful expenses
under this chapter, or by reason of any of its provisions, m
the prosecution of any suit or proceeding, or otherwise, for
the enforcement of the provisions of this chapter the insur-
ance commissioner must present bills, duly certified by him,
and accompanied with vouchers, to the state board of exam-
iners, who may allow the same, and direct payment thereof
to be made; and the state controller must draw warrants
therefor on the state treasurer for the payment of the same
to the insurance commissioner, out of the general fund, m
addition to the ordinary contingent expense.

History Enacted March 20. 1905. Stats, and Anndts. 1905, p.

History. ji,ud.i-i.c<^ rhanter A codification of

422. See introductory note to ^Ins chapter. ^
§ 13 Act of March 19. 1891, Stats, and Amdts. 1891, p. 130.

§4531). EXEMPTION OF FRATERNAL SOCIETIES FROM
THIS CHAPTER. The provisions of this chapter do not
apply to secret or fraternal societies, lodges, o^' co^"^;!^'
which conduct their business and secure membership on the
lodges system exclusively, having ritualistic work and cere-
monies in their societies, lodges, or councils, nor to any
mutual or benefit association organized or formed and com-
posed of members of any such society, lodge, or council
exclusively.

«■ *«^,-. T^nacted March 20, 1905, Stats, and Amdts. 1905. p.

Historj: Enactea marci , ehanter A codification of

422. See introductory note to tl^j^/^'^f;'^^„„.'^„ ^30
§ 14 Act March 19, 1S91, Stats, and Amdts. 1891, p. 130.

AS to many miscellaneous matters of insurance, see note
'Ts'Twi^at constitutes a secret society, see Kerr's Cyc. C. C.
I 453p. note.



Kerr's C. C— 10 289



§ 454 CIVIL CODE. [DiV.I,Pt.IV.

TITLE III.
RAILROAD CORPORATIONS.

Chapter I. Officers and Corporate Stock, §§ 454-459.
II. Enumeration of Powers. §§ 465-478.
III. Business, How Conducted, §§479-494.

CHAPTER I.

OFFICERS AND CORPORATE STOCK.

§ 454. Directors to be elected, when.

§ 4.55. Additional provisions in assessment and transfer of stock.

§ 456. Railroad corporations may borrow money and issue

bonds, etc. [Interest — limitation of amount.]

§ 457. To provide a sinking fund to pay bonds.

§ 458. Capital stock to be fixed.

§ 459. Certificate of payment of fixed capital stock.

§ 454. DIRECTORS TO BE ELECTED, WHEK. Directors
of railroad corporations may be elected at a meeting of the
stocliholders other than the annual meeting, as a majorit}^
of the fixed capital stock may determine, or as the by-laws
may provide; notice thereof to be given as provided for
notices of meetings to adopt by-laws in article two, chapter
one, title one, of this part.

History: Enacted March 21, 1872.

132 C. 677, 678, 64 P. 1085 (referred to).

As to many miscellaneous matters as to corporations, gen-
erally, see note § 283 ante.

RAILROADS — GENERALLY.

Accident as evidence of negligence of. — See 20 A. S. 490.

Additional servitude upon highway. — See 1 A. C. 861.

Adverse possession of riglit of way. — See 2 A. C. 715; 10 A.
C. 992; 2 L. N. S. 272.

Aid in construction. — See 5 L. 726; 14 L. 479; 27 L. 696.

Alighting from moving train, passenger's contributory negli-
gence in. — See 17 A. S. 422.

Animals — Duty towards and injuries to, liability. — See 1 L.

290



Tit.III.ch.I.] RAILROADS, GENERALLY. § 454

148; 1 L. 449; 8 L. 135; 11 L. 426; 11 L. 460; 14 L. 841; 15 L.
39; 18 L. 450; 25 L. 162; 25 L. 291; 37 L. 659.

Same — On the track, duty of to. — See 49 A. D. 261; 20 A. S.
161.

Appliances, improved, duty of to furnisli. — See 65 A. S. 738.

Assessment of riglit of way for street improvement. — See 2
A. C. 587; also "Taxation and Assessment," this note.

Attachment — Against cars of foreign railroad. — See 2 A. C.
349.

Same — ^Liability of cars of foreign railroad to. — See 2 A. C.
349.

Business may conduct as incidental to main business. — See

4 A. C. 910.

Change of location — Power to make. — See 7 A. C. 1032; 36
L. 510.

Charter rights of subject to legislative control.— See 9 L. 754.

Child — Care required of railroad in operating turn tables in
respect to. — See 5 A. C. 377.

Same — Righl: of persons in charge of train to presume will
get out of danger. — See 6 L. N. S. 283.

Same — Trespassing on track — Duty of railroad to anticipate
presence of.- — See 4 A. C. 680.

Collisions on roads where the "block system" is used. — See

5 A. C. 444.

Combinations — Authority of railroad in respect to. — See 5
L. 726.

Same — Between to prevent competition. — See 74 A. S. 250.

Same — Constitutional and statutory restraints upon. — See 1
L. 849.

Same — Liability of consolidating company for debts of prede-
cessors. — See 23 L. 231.

Same — Restriction on consolidation of parallel or competing
roads. — See 45 L. 271.

Compelling — Operation of and increase of facilities, etc. — See
24 L. 564.

Same — Roads to light their tracks in cit5'. — See 41 L. 422.

Compensation for interest acquired by telegraph company in
right of way. — See 1 A. C. 741.

Completion of road, compelling. — See 24 L. 564.

Condemnation of right of way of for telegraph line. — See 1
A. C. 517; 1 A. C. 533.

Same — Compensation for. — See 1 A. C. 741.

Connecting lines of and powers of carriers to contract for
transportation beyond and to limit tlieir liability of their own
routes. — See 72 A. D. 230.

Consignee may rightfully demand delivery of goods without
payment of freight when. — See 7 A. C. 790; 9 A. C. 794.

291



§ 454 CIVIL CODE. [Div.I,Pt.IV.

Consolidation of and its effect on pre-existing debts and
liens. — See 59 A. S. 554.

Constitutionality of statutes imposing- double damages for
killing stock. — See 52 A. R. 375.

Construction of fences. — See 3 A. C. 181, 182; 7 A. C. 987; also
"Fences," this note.

Contracts — For location of stations, when invalid as against
public policy. — See 36 A. R. 44.

Same— Which may not extort from shippers, and their effect
when extorted. — See 13 A. S. 782.

Contributory negligence — As affecting liability of railroad
company.— See 3 L. N. S. 196; 4 L. N. S. 344; 11 L. N. S. 963;
12 L. N. S. 359.

Same — Of driver of vehicle, applicable to occupant. — See 5
A. C. 163.

Criminal offenses against and liability therefor. — See 25 Jj.
345; 36 L. 208; 61 L. 281; 63 L. 378.

Crossings — Care which must exercise at. — See 26 A. R. 207.

Same — Countrj^ — Speed at as negligence. — See 3 L. N. S. 798.

Same — Duty and liability — To give signals at. — See 15 L. 426;
21 L. 723.

Same — Same — To give signals at other than grade. — See 3
A. C. 361.

Same — Same — To keep flagman or other person at to give
warning of approaching trains or cars. — See 2 A. C. 294; 100
A. D. 412; 37 A. R. 443.

Same — Same — To maintain flagman at in absence of statute. —
See 2 A. C. 294; 100 A. D. 412; 37 A. R. 443.

Same — Same — To maintain and operate gates at. — See 2 A. C.
449.

Same — Same — Toward person going upon track to pass
around a train blocking. — See 5 L. N. S. 775.

Same — Duty to stop, look and listen at where flagman situ-
ated. — See 10 A. C. 418; also "Duty to stop, look, and listen,"
this note.

Same — Flagman at, liability of for injuries due to absence
of.— See 2 A. C. 294; 100 A. D. 412; 17 A. R. 363; 37 A. R. 443.

Same — Injury by trains at and liability therefor. — See 3 L.
594; 3 L. 683; 3 L. 745; 7 L. 317; 9 L. 57; 18 L. 63; 47 L. 301.

Same — Negligence in allowing view at to be obstructed by
trees, etc., on its right of way. — See 10 A. C. 485.

Same — Negligence in permitting obstructions on right of way
which obscure view of track from. — See 12 L. N. S. 1067.

Same — New highway — Statute requiring railroad to construct.
—See 8 A. C. 1056.

Same — Overhead — Duty as to signals by locomotives on ap-
proaching. — See 1 L. N. S. 307.

292



Tit.III.ch.I.] RAILROADS, GENERALLY. § 4^4

Same — Power of municipality to require gates at. — See 3 L.
N. S. 141.

Same — Rig-lits and duties at. — See 5 L. 813; 7 L. 121; 18 L.
154; 26 L. 92; 29 L. 485.

Same — Validity of statute requiring- railroad to construct and
maintain at new highways without compensation.— See 8 A. C.
1056.

Culverts — Necessity of notice to purchasing road to construct,
when. — See 12 L. N. S. 571.

Damages to property for which liable after acquiring rights
of way by eminent domain proceedings. — See 5 A. S. 537.

Demurrage, right of to collect for detention of cars by
consignees. — See 44 A. S. 921.

Depot — Failure to erect under contract for — Measure of dam-
ages. — See 4 A. C. 99.



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