Page:United States Statutes at Large Volume 54 Part 1.djvu/1107

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54 STAT.] 76TH CONG., 3D SESS.-CH. 792-OCT. 9, 1940 No such company shall subscribe to or participate in any under- Underwriti writing of the purchase or sale of securities or property, or enter into any transaction for such purchase or sale on account of said com- pany, jointly with any other corporation, firm, or person, or enter into any agreement to withhold from sale any of its securities or property; but the disposition of its assets shall at all times be within the control of the company. Nothing in this Act shall prohibit a company from accepting in AcetonceS o good faith, to protect its interest, securities or property, other than herein referred to, in payment of or to secure debts due or to become due the company. SEC. 19. EXCLusIVE AGENCY CONTRACTS. - NO domestic company Exclusive a authorized to do an insurance business in the District shall have or make any contract with any person whereby such person is granted the exclusive right or privilege to solicit, procure, write, produce, or manage the entire insurance business of such company, or to collect premiums therefor, unless such contract is filed with and approved in Exception. writing by the Superintendent. The Superintendent shall not approned. approve any such contract which- (a) Subjects the company to excessive charges for expenses or commissions; or (b) Gives to such person the right to manage any of the affairs of such company or the exclusive right to solicit, procure, write, or produce the entire insurance business for such company, or to collect the pre- miums therefor for such unreasonable period as may jeopardize the interests or security of the company's policyholders. SEC. 20. FOREIGN OR ALIEN COMPANIES. -Upon complying with the Fopreg or provisions of this Act, a foreign or alien company organized as a stock, certmte mutual, or reciprocal company, or as a Lloyd's organization, but not busr ts. otherwise, may be authorized by certificate of authority to transact in the District the kind or kinds of business which a domestic company similarly organized may be authorized to transact under this Act. Such certificate of authority shall be issued as provided under section 2, A nt d, p.10 l . chapter II, of this Act. The issuance of a certificate of authority to a Lloyd's organization shall be subject to the provisions of section 20A of this Act. SEC. 20A. Individuals and aggregations of individuals transacting an Lloyd's plan. insurance business upon the plan known as Lloyd's whereby the indi- businessunder. vidual underwriters become liable severally for specified proportions of the whole amount insured by a policy, heretofore organized under the laws of a State of the United States, or of a foreign government, may be authorized to transact business in the District, upon the following dtns. conditions: 1. They shall comply with and be subject to the same terms, condi- Compliance tions, and provisions as are imposed by this Act upon foreign stock tems, etc insurance companies, except as provided in the next succeeding para- graph and except that the maximum amount of insurance to be assumed by an individual underwriter upon any single risk for each kind of insurance shall not exceed 10 per centum of the value of the cash and securities deposited in trust by such underwriter, plus the share of admitted assets other than underwriter's deposits of such Lloyd's belonging to such underwriter, less the share of liabilities and reserves of such Lloyd's allocable to such underwriter, but in no event shall it exceed 10 per centum of the value of cash or securities deposited in trust by such underwriter; 2. They shall have and shall at all times maintain surpluses of not Maintenance less than $300,000 in the aggregate and shall at all times have on deposit Deost for 1 with an insurance department of a State of the United States, or with a of polleYho1den bank or trust company designated by such insurance department, for 193470°- -- 41 -PT. I -- 8 ng of tother gency iction. ttobe alien if an- ansact ito do with ofsnr- benefit i. 1073