178 Urdahl—The Present Fee System in the United States. 
two, $50; one, $55; two, $30; and the others, sums varying between 
these mentioned. Very often the official granting the charter, 
is required to examine into the solvency of the company, and 
to ascertain whether it has sufficient assets to secure the policy¬ 
holders. Special fees are collected for such examinations, and 
are usually given to the examining official as part of his salary. 
Sometimes the law fixes a maximum fee 1 which may be collected, 
but provides that the examiner or commissioner shall be paid 
according to the amount of labor involved. Other laws provide 
for the payment of the actual expenses of the examiner during 
the time spent in making each examination. 2 
D. ANNUAL FEES FROM INSURANCE COMPANIES. 
But an insurance company is radically different from other 
corporations. It may be perfectly solvent this year and have 
ample securities to meet all liabilities, while in less than a year 
it may be on the verge of bankruptcy. To guard against the 
possibility of an insolvent company continuing to sell policies, 
most of the states have made provisions for an annual examina¬ 
tion of all companies doing business within a state, to facilitate 
which each company is required to make an annual statement of 
assets, liabilities, amounts of policies, and so on. As remun¬ 
eration for the expenses of this examination, an annual fee is 
required, which ranges in different states from two to fifty dol¬ 
lars. This system is in its essence an annual grant of license. 
Another peculiarity of insurance companies is the extent of 
territory over which they can operate. But few of them are 
limited to any one state. A company organized under the laws 
of one state, must therefore obtain special permit to carry on its 
business in another. There is thus a large number of regulations 
which are only applicable to foreign insurance corporations, 
that is, companies organized in another commonwealth. In gen¬ 
eral it may be said that the fees exacted from these, are higher 
than those collected from domestic corporations. Some states 
even make the fees so high that they are almost prohibi- 
1 Laws , Texas, 1876, p. 223, Sec. 2: Fee not to exceed $250. 
2 Minn., 1878, Ch. 34, par. 282; la., 12, Gen. Stat ., Ch. 138, par. 24; 
Wash., 1890, par. 15, — charge $5 per day. 
