The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1870-05-05
DAILY PRESS.
CORTLAND a
Thursday Morning, May 8, 1870.
Wholesome Insurance LegislntiOn.

Wholesome Insurance Legislation.
We publish, in another column, the text en-
tire Of the new insurance law of Maine, which
was approved on the 21st ult. Underwriters
of all classes and localities will be interested
in reading it. They will discover, in so doing,
that Mr. Examiner Paine failed as utterly and
ANONYMOUSLY in his attempt to incorporate
in the law provision for hateful and oppress-
i've tax upon outside insurance companies, as
in his other attempt to secure himself the en-
oluments of the office of insurance commits
siOner. Not only is the Act silent upon the
subject of taxation, but it speaks in unmis.
takeable language to the effect that no person,
holding the office of examiner of banks, shall,
missioner, which efectually checkmates Mr..
Paine in his endeavor to monopolize the per-
quisites of both these offices.
For this, the already Overburdened compa-
Iies and the citizens of the State of Maine,
who were threatened with the two-fold evil of
an indirect tax, in the shape of increased in
surance premiums, and a direct burden, in the
shape of Mr.. Paine examiner and commits
sioner, have largely to thank the Chronicle.
1t ,uas thisjOurnat Which first sounded the
alarm, and exposed the nature of Mr.. Paine's
little game, and from that time pursued him
unsparingly, taking good care that its crti-
cisms should come before the insurance COM
mittee Of the legislature. Surely, we may be
pardoned for no little qualification at the re-
suit.
The law is, in the main, sensible and salu.
tary. In some respects it is an improvement
upon any State insurance law now in force.
1t is, at the same time, more simple and more
comprehensive than any other. 1t leaves
more of the details of administration to the
discretion of the commissioner, and makes
him the Judge of the companies solvency, re-
serving to them the right of appeal from his
judgment to the Supreme Court.
Among other noticeable features in it, the
following are the Lost unusual, and will not
fail to attract attention and criticism:
A notable omission of the law is, that no
fixed amount of capital is required of insur-
ance companies organized in the State. Com
panies of other States are required to have a
paid-up capital Of 100000, and, to the ever
lasting honor of Maine legislators, let 1T be re-
corded, that in this section it is provided that
no cooperative association, Incorporated by
any other State, shall be permitted to do
business N Maine 'cithout a bona fde paid
up capital or cash assets of 100000.
The standard for the valuation of life poll
cies is fixed at per cent interest, and the
Actuaries' Table of morality. Valuations
are left optional with the commissioner, and
no additional fee seems to be charged for
making them. The delivery of policy with
in the State, by mail, is construed to be an Isl
sue of such policy within the meaning OF
that clause of the statute which prohibits
such issue when the company has been ex-
PEELED by the commissioner.
But, perhaps, the most remarkable provi-
sion of the law, is that which vests in the
commissioner judicial authority to try all
cases where the officers Of any insurance
c1o1l r,rlu To Il ~, bot
ing their belief that person has procured in
surance of them by false representations, or
that such company has sustained a loss by the
fraudulent act of the assured. For this pur-
pose the commissioner is empowered to sum-
mon and examine under oath, at such time
and place as he shall designate, any person OF
persons, and to require the production of al
books or papers necessary for full investiga.
tion Of the facts. Such investigation is to be
made at the expense of the company.
1t does not appear from the statute when
the result of such investigation is to be final
and binding upon both parties: but it would
seem, of course, impossible toedeprive either
of the right of appeal to the courts. The
utility OF this provision will provoke no little
discussion. We are inclined to believe it
wholesome. The result of such an investiga-
ton, conducted by one man, can hardly fail
to be the discovery of fraud, if any has been
perpetrated; while the possibility of such in
vestigation hanging in terrorem over the dis
honest applicant, will be to restrain fraud and
prevent crime.
On the whole, the law is good one, and
reflects much credit upon the good sense OF
the legislature which enacted it. The motto
Of the State of Maine,-DT1g0, Is a proud
one, and it is to be hoped that, in respect to
insurance legislation, it may prove true one
that this legislation may be the pioneer oil
more just and liberal dealing on the part O
legislators throughout the land. So mote i
be.
The above notice of the new insurance law
of Maine, by the editor of one of the most in
fuential insurance journals of the country
shows in some degree in what estimation the
labors of our legislators are he'd abroad.
The delightful GOODNESS of the editor of the
Chronicle, however, in appropriating to him.
self the honors belonging to others is particu-
larry refreshing. So far from "the first alarm
having been sounded by him, the general plan
of the legislation was arranged by the under
writers of Portland, and after the publication
of Mr.. Paine's draft of an insurance laws. The
details were perfected by committee of two
or three of the Portland underwriters 10 con-
ference with the Insurance Examiner al
which conference the crudities and obnox
ious features of the examiners bill were strucl
out, and the bill nearly as finally passed b,
those whose knowledge of insurance, and in
surance matters enabled them to correct til
vague speculating of an experimenter in ur
derwriting literature.
The exclusion of those s'abominable hum
bugs" denoted "Co-operative Mutual Relic
Societies." measure SO highly commende
by the Chronicle was owing to the strenuou
and persistent efforts of the Portland Com
mittee against the decided proclivities of tn
Examiner, and the same may be said of tn
section providing for the valuation ct policies
Section II seems not to be understoo
by the editor. The commissioner is not b
this section invested with any Judicial al
tnority, but is simply authorized to INCEST
gate in behalf of the company any instant
reported by them of attempt at fraud, IN o
tanning insurance. His decision is not fina
but the intent of this provision is to prevel
litigation and it will undoubtedly have gre;
effect in that direction This section W;
prepared at the request of the underwrite
OF Portland by an eminent lawyer, and wit
a1ew minor amendments, was adopted a
prepared.
For the protection which this law afford
the people of this State, against the unjus
burden of taxation, and the principle of pro
scription, they have to thank the underwater
of this city and not the Insurance Examiner
who is undoubtedly an excellent man, if hi
forte be not Insurance, nor to the Chronicle
although its good word for an insuranc,
measure has, as it ought to have, great weigh
among insurance men.
Letter from the Kenncbec.