Page:United States Statutes at Large Volume 54 Part 1.djvu/1101

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54 STAT.] 76TH CONG. , 3D SESS.-CH. 792-OCT. 9 , 1940 company which has failed or refused to comply with any provision or requirement of this Act, or which- (a) Is impaired in capital or surplus; (b) Is insolvent; (c) Is in such a condition that its further transaction of business in the District would be hazardous to its policyholders or creditors in the District, or to the public; (d) Has refused or neglected to pay a valid final judgment against such company within thirty days after such judgment shall have become final either by expiration without appeal within the time when such appeal might have been perfected, or by final affirmance on appeal; (e) Has violated any law of the District or has in the District violated its charter or exceeded its corporate powers; (f) Has refused to submit its books, papers, accounts, records, or affairs to the reasonable inspection or examination of the Superin- tendent, his deputies, or duly appointed examiners; (g) Has an officer who has refused upon reasonable demand to be examined under oath touching its affairs; (h) Fails to file with the Superintendent a copy of an amendment to its charter or articles of association within thirty days after the effective date of such amendment; (i) Has had its corporate existence dissolved or its certificate of authority revoked in the State in which it was organized; or (j) Has had all its risks reinsured in their entirety in another com- pany, without prior approval of the Superintendent. The Superintendent shall not revoke or suspend the certificate of authority of any company until he has given the company not less than thirty days' notice of the proposed revocation or suspension and of the grounds alleged thereforn and has afforded the company an opportunity for a full hearing: Provded,however, That if the Superintendent shall find upon examination that the further transaction of business by the company would be hazardous to the public or to the policyholders or creditors of the company in the District, he may suspend such authority without giving notice as herein required. SEC. 4. WEIEN COMPANY HAS CEASED BUSINESS. If a company shall cease to do business in the District, it shall thereupon make report to the Superintendent of the taxable premiums collected which have not been reported prior to the date of the cessation of business, and shall forth- with pay to the collector of taxes of the District, through the Superin- tendent, a tax thereon computed according to law. If a company fails or refuses to make such a report or to pay the tax imposed upon it as required by law, it shall be liable to the District for the amount of such taxes, plus a penalty of 8 per centum per month for each month or part thereof during which such taxes remain unpaid. SEC. 5. RECEIVERSHIP PROCEEDINGS.-T he Superintendent may, through the corporation counsel of the District, apply to the district court of the United States for the District for a rule directing any com- pany organized under the laws of the District or any company in the course of organization to show why the Superintendent should not take possession of its property and conduct its business as the nature of the case and the interests of the policyholders, creditors, stockholders, or the public may require, whenever any such company is- (a) Insolvent; or (b) Has neglected or refused to observe a lawful order of the Super- intendent to make good any deficiency in its capital or surplus; or (c) Has by contract of reinsurance or otherwise transferred or attempted to transfer substantially its entire property or business, or has entered into any transaction, the effect of which is to merge sub- 1067 Notice of revoca- tion, etc.; hearing. Proviso. Suspension without notice. When company has ceased business. Receivership pro- ceedings.