, 1870-03-05
INSURANCE IN MISSOURI
Frauds and Sxind1inC NesullIun
iE0m Kp1ulficlanI xnfeR uordz.

Erouds and Sxyind1inE Resulting
from Insufficient Safeguards.
TIC following Ia an extract from the Crst supual
report OF the Superintendent Of the Insurance d.
parsnent TO the Legislature Of Missouri:
The receftltT Of q cew tasurance, OF a stringent
ace coEpa1!es, a1d PROTECTING me people aga{nst
tit great wrongs tha: could be and Eere prAct1ced
SEEN when we cotasdes tie condition Of Insurance ca
Acshs IN this State At the lime Of the p24sa1a OF
Le laK Of March 10. 1sG9. There were no police
foreign companlee No reports or eIarica,;ons ~
were made Of requued. and Il VA verJ
diGcu!s lor anJ ptrson but an officer OF 4
corpanJ 70 gEtn 4aJ rosItise or cor7ec. inlcrua-
non Of is coEdit1on and trAnsack&onA ID somo
companies tina: came undtr M exAroinatlou, nut
feT noo1a q any f,nd Esss tept. and these xere
vnIen s1s sup "a such : slotealy mannef. and with
I'll ns.as u ssoa! e. s sas
ssag 70 11sa us .ds :,
cGoE Wa left open for d,shoness companies Of
0theE Statea to come xnd r!actloe their z*ludlinK
computes co7ettd the State, wiule RISKS on
sptc1l 40 noses rlank and detIsuded 1t,hou.
nn1.d tsa1 os R3a ~, taeh n Somp.ols taose 'neos
rual y pan to do IRE tpsufa ance, were most pro.
cocttse Of mischief Acd ftaad. There MAS pota.nr
II e ne9ss g ps.s s1
patlfs, a. ID, - they oGeFed to Ducctor& ot1cers,
ald aRetu1aIe ano tlca opportunities 10 pat noa.
= NEt&
Ary 1Fe or MoHe per1ons co1ld procure 4
Ecer4e from The SecsetarJ Of sAse sad pa:ame
corporate body 70 da Insurance. upon the r17iual
p pan. mtrem ogoo @ @n!:og IL ~ once q me cless
oExanl1ed. articles Of A2Ieeneat Resttnx to.th me
ZANE tntJ assume, the time the assoctas o. Ia pro
tt1n propo1ed 70 be selec1et- Under The Ax euch
companies had poEe1 70 extend their bQaineas 10
a.! para oS nc United ssasess petfons trsuting
properly therein for more than tveiTa raoath4 BE-
knowledge ef tie lRell fact 4are to .ne coupaoy
ttns opon lhetr prpptty insured Hhiie shetr poii-
poItiornl ra,ts Of all losses that might occur ana
Ill ssss ssneuss thar n.gnt be nsda By the CON.
psny: T1ese nemo*Ia were a. soe mercy Of Of
sonnuuh themselves IN oalce.
The following brief kn,eneat OF fac.a, brought
ont 81 pen onA tocs OF The a1ars Of eonre
q 5eeAe Eutual fre companies tuAde by ny dlrec-
ucn. rt snos bog they were opArated heports
Of thtte Examinations are On ne In thf1 uen..rs
ment; :. 1a,s - ,ss'emsnt Of facts w1n aoply to
Ettc, kpec.al ex1ntnauons Hesa n4de. am
K'st 70 s1J that ! few holuzA5le exception, Ners
uou ths i1cospatatoss Hoa!d IN: proceed to masc
t:ecselves nemns n Of tho De = Companies bT
soecurE insutance tnersn Tor The term Of sKe,1o
law CID rct r1 limit to tne auouns Of Insurance.
oscesssiy foE sneh purpose. and ~ such personl
NsIe nos possssssd q 1ssae estates Of had not
rare case to nCd ose who had Insured hia own
p.optrty log greater amount than from yi,ooo
70 q, 10 Wills o:tets iraarcd II 8u0s v4tJtn1
nom Il eco 10 <5,oon Tne rropertT
:nSured La euch cases Ce3erally being f1fuilure
ooof1, wearing apparel 1nd such o:1e1 leetIu.u.
o.e material The premium nosas given were Ten
- ceGt E1 the 4EodE1 injured, and Tia c1Ah prs-
= 1toE pa!d n the t:roe OF taking tnsura1ce wea
ano Hn per tens Of the pfeutuu nurek Thu.
apoo me payment Of coss or pcltcea and ca4a ~
se19nents OF frum nfty ceurs to nf.een doIl3f1
seea. tbete tnco1po1Atof1 would btcpue mem
e: e AEo Wonfd sfteEEard support his dignity OF
u.nee'elf. Tne next s:tp taken bJ 1ach tncofpo-
fssoka md NE Ehets WA 70 elecs n n4ly OF
.us0te4sts Directors az possible, and 10 dx the
s%aHeS Pertaining TO thhtf ot1ceA Al tnIs Nas |
!" =, .n i1er own hands, tneJ AusEed tnemseves
~ uasS!eEk co1peEsAuol for -tte Npfk to be DONE
= eten 6oaid Of Directors lew seata were gwen |
Su1see$ enFAxeDenrs CT Iudneieaee 20 such eaAt- [
sH ptevented than nom looking into the work |
~ q tao co-csro, Aad their names we're u1ed .
suod atAndlng. ,s>.
2 he snA.f1 OF the comoantes wefo In all cAsel |
and the inrts papdled, BY the few IT,
eel POI Atnss aho made themselves NAoaRlnK Di
tsc1ots apd otncess: generally By tae two OK Tires
Y Nbufe reyHoD4t bepedt 1ud p1oak the corporA-
:ots were Grated For example: IN one conpA-
oy he ptrzen chiefly eoneeFced IN ~ ofgsots2toa
>aaeed himself TO be elected Set1e:UJ, and ore Of
ne TWO Managing Directors. Ne Toud soad the I
3sGea3e {nis owt} *rpots Of toa condition Of
he CON ptny." to himself It'd tho oahex Managing
ftctrfA ThaT. - Hanging Dhecsan,~ would
arrFuStr And Txp1ttkc tae coMpAnK That III MAJ
,offect Flo11lshinz statements Of tne financial /
>ozd1non OF The company would be paolaaet, I'D