, 1866-01-13
BUREAU OF INSURANCE.

"A bill has been introduced in Congress- to
establish Bureau Of Insurance, which, We
Observe, meets the approval OF the principal
Journals In the country which make this de-.
partmeut Of business 4 specially. It's, enti-
tied ten act to rcgulate the bussness OF 1nsur-
ance among the states-to provide for fund
ing the Indebtedness Of tho United States
aud Tor the creation Of National Bureau Of
insurance. It provides that thace shall be
sstnblished In the Treasury Department, 4 sep
crate bureau, which shall be charged With thia
aud all other laws that may be passed By
Congress for the regulation Of the business
Of insurance, among the several statos, the
chief officer of the bureau to be called the
Commissioner Of Insurance, and 10 be under
the general direction Of the Secretary Of
the Treasury. He shall be appointed by the
Prcsldent by and with the advice
and consent of the Senate, and shall hold his
officcifor Tho term OF i've years, unleAs sooner
removed by the President, and receive u
salary Of Is 900 Per year. Tho scope and pur-
pose Of the bill Is embodied principally In the
9Th section, which provides that every per-
son, association, copartnership, company, or
other corporation, authorized to engage in .
the business Of insurance, under and In tpur-
Buance Of the laws OF \ State or country in
which such party resides, and has d plaes Of
busimess, fhan, before engaging In snch busi-
ness, In the United States, if foreign party,
or in any other State than that in which such
party resides, II not foreign, file in the of1ice
Of Commissioner OF Insurance, declaration,
bnsiness proposed TO be done-whethcr fire,
marine, life, health, accidents the name
under which the business is to be done the
place where Its principal otfiee shall be
located the amount of capital to be pledged
10 the business, and the number or shares
into which the capital OF every association or
corporation shall be divided, aud . copy
Of Its charter and by-1aws, and each party
shAll before commencing business under the
act, make special deposit with said Com
missioner of United States Bonds,"ss as tol-
lows, to-Tit Fire mud Marine Companies. to
the amount of t5fty Thousand dollars; Life
and uealth-casuaity mud accident, and all
other clssses OF companies, to the amount OF
one hundred thousand dollars, which
bonds shall be Kept by said Commis-
sIoueE, TIL they shall be otherwise dis
posed Of, in pursuance OF the provisions of
the act.
The deposit Of bonds Is then to be Increased,
after the making Of each annual return, SO
that every company shall at all times have on
deposit tho following Sums, 10 Wit: PARTIES
taking fire and marine Iisks, and Ill parties
the amount Of whose deposits Is not specially
named, such amounts as shall be nsccrtained
by the Commissioner to be equal, including
the original deposit, to forty per cent upon
uttr r3~ trHx
ing ut the date OF the last annual return ; MI
companies organized under State legislation
and doing business az insurers against loss Of
LIE or personal injury, by accident; aud
all parties fnsuring against casualties
10 property, {other than, fire and
marine casualties,) not less than one hundred
thousand dollars. and such amount additional
thereto Is shall he equal to twenty per cent
of their capital. Companies, associations and
corporations authorized by State legislatIon
10 insure lives and grnnt annuities, whether
Joint stock, mutual or both combined, and
transActi1g business under this act, the sum
OF fity thousand dollars, and such amount
additional thereto as shall equal oue-fiflh Of
the sum, {aace1tamed by valuation to oe made
by the Commissioner,) necessary to be re-
served, to provide for all the outstanding OBJ
lgatl1ns OF such companies respeetlsely-not
exceeding, however, in my case one hundred
thousand do1larz-
The purpose of all this machinery, md
this consolidation of Insurance interests is
apparently to secure the policy holder against
loss, to require the companies assuming to do
an insurance business to present satisfactory
evidence thht they hare bona .tde capital
and character. and perhaps also to create a
dcmaLd for United States bonds, though a.
TO the latter 1t seems hardly necessary to 70.
| sort to such small expcdients TO bolster up
| the national credit We do not assume to be
insurance experts. We do not undertake to
say how tar the theories, upon which the ms,
tiona1 banking system Is based, are applicable
! TO the insurance businesa- The proposed na.
| tional system seems to be not unlike the sys
| ten which The State of New York has adopt
ed for the regulation Of her own insurancs
companies, and therefore cannot be called Al
untried experiment. The New York Uader
to.i.er warmly commends the proposed law
and the North,pestern Insssranee Journal Of thii
city, gives II a temperate support.