The Portland daily press., 1866-07-13


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A National Bureau of Insurance.
A bin has been reported to the House Of
Representatives in Washington, by Mr.. Cook,
from the Committee on the Judiciary, for the
creation in the Treasury Department of a
separate bureau for the administration Of
laws regulating the business of insurance in
the several States. The subject Of this bill
has special interest for our readers at this
time, and we proceed to give an abstract of its
provisions.
The chief officer of the bureau is to be
tyled the Commissioner of Insurance, and
neither he nor his deputy are to be interested
either directly or indirectly, in any insurance
company or business. Every person or COM
pany, authorized to engage in the business
of insurance by the laws of the State or for
eign country in which the party resides and
has place of business, shall file with the
Commissioner, before engaging in business in
the United States, if a foreign party, or in
any other State than that in which the party
resides, if not foreign, declaration which
may be amended from time to time, setting
forth the following particulars:
1. The kind of business proposed, whether
fire, marine, life, or other.
2. The name under which the business is
to be done, and the location of the principal
Office.
8. The amount of capital pledged, and the
number of shares into which it il to be divi-
ded.
4. A copy of its charter and bylaws, and
If foreign, a copy of the laws of its country
relating to its branch of insurance.
After filing this declaration, properly au-
thenticated, the party, before commencing
business as above. shall deposit with the
Commissioner Of Insurance. United States
bonds, as follows:
sssof.oo sd sss Marine companies, $4,000, and
assots ','' -ssl- = -~~h s5OO0OO of gross
Life, Accident, and all other companles,
100000, and $4,000 additional for each
$1,OO0,OO0 of gross assets
The Commissioner shall thereupon grant to
the party, authority to transact business in all
parts of the United States and the Terrific
ries, subject to no local or State taxation. d.
rect or indirect, exceeding one per cent. of the
net premium received in the State where the
tax is imposed, nor to any local licenses, de-
posts, or imposts, other than those decreed
from time to time by Congress; and life in
surance companies, entirely mutual, shall not
be subject to any such taxation.
Whenever. final judgment shall be recover
ed in court against depositor upon liabil-
ity incurred in the business specified in his
declaration, and execution shall be issued and
returned unsatisfied, such execution may be
presented to the Commissioner of Insurance
with certified copy of the JUDGMENT roll, and
the Commissioner shall then grant a hearing
to the parties concerned, and determine the
questions upon which they have taken issue.
From his decision an appeal may be taken
within ten days, to the Treasurer of the Uni
ted States, whose decision shall be final. Up
on final decision, unless payment shall be
made within ten days, the Commissioner will
proceed to sell at public auction so much of
the deposit as will hquidate the debt, interest
and costs, and the bonds SO sold must be re-
placed within ten days or the depositor for
feits all his acquired rights.
The bonds are to be held solely to secure
performance of the promises of the deposltors,
who will nevertheless, while proceeding regu-
larry in their business, receive the semi-annual
interest upon their deposits. An annual
statement of the affairs of the party is requir-
ed, and the Commissioner is authorized to adj
dress inquiries, which must be promptly an
swered, to any party respecting his affairs or
particular transactions.
The expenses of the bureau are to be borne
by the insurance companies, regular fees be-
ing charged for all papers filed in the Com
missioner's Office and an assessment pro rata
being provided for, to meet any deficiency.
Finally, no party is to do business as fire
or marine and as a life insurance company, at
the same time; no company shall expose it.
self to any one fire or inland navigation risk
exceeding ten per cent. of its capital stock !;
and no company shall commence business be-
fore having paid up capital of at least $780,
600.
AS measure designed to insure the insur-
ance companies, TO secure the props upon
which men lean in misfortune, the intention
of the bill is commendable. Two features we
are compelled to regard as ill-advised. The
authorization by Congress of any business
which is to be exempt from the ordinary bur-
dens of the communities in which it is trans
acted, is something to be deprecated and OPP
posed, whenever attempted. Inequality of
taxation is not re publican and can never be
satisfactory TO the American sense of Justice.
On the other hand, the plan of fastening the
expense of the bureau upon the insurance
companies is inequitabie. Let them pay suit
able fees for all the trouble they make; hut
let it also be remembered, that the bureau, if
it is worth anything, will be useful to the in
sured instead of the insurers. If the bureau
deserves to be established at all, there is no
good reason why the United States should
hesitate to assume the expense.