The Daily state register. [volume] (Carson City, Nev.) 1870-1872, 1871-10-31
INSURANCE COMPANIES AGAIN.

the next Legislature; and as only
two companies have filed the neces-
sary State bonds, it enquiries, "Of
what benefit has thelaW been to US?
The benefit has been this: Aside
from the direct, accessible security
it affords to policy-holders in case of
loss by fire, it has given individuals
desiring to insure the assurance that
the companies who I doing bust
ness in this State are competent to
fulfill their engagements. It has
become very frequent, OF late years,
for persons who could manage to
scrape together a two-and-half piece
to organize themselvesinto an insur-
ance company, and start out guar
anteing to pay all the losses that a
credulous public propose to sustain.
This thing has become a nuisance.
The country has been flooded with
the circulars, agents, and agencies of
these pretended capitalists, who to
increase their fraudulent business
were ready to insure at rates known
to be illegitimate and unsafe by V
eryone who cared to give the subject
a thought. How far this matter has
gone is now evident in the number
of so-called insurance companies
who have gone under since the Chi
cago fire. Thousands of people who
supposed themselves safe in any
emergency, wake up to find them
selves victims of misplaced conf
dence- They supposed when they
obtained apolicv that emenated from
an office styling itself an Insurance
Company that they were insured.
but the company went up with the
smoke of the buildings. The ashes
are worth mere tkan the policies.
The sharper is ahead, and the dupe
of cheek and ~rascality finds himself
without a cent to begin the world
anew. Most Of the States have found
it advisable to prohibit lotteries !:
but what is the evil OF lotteries to the
evil of irresponsible insurance com
panies? Companies that pretend to
insure should be made to show that
they have got something to insure
with. The statute of Nevada re
quires all companies doing business
here to make this showing. 1t is
true that many sound Offices may
think the business of this State in
sufficient to warrant this, but those
companies which do take these State
bonds thereby furnish those with
whom they propose to de business,
with some security that they are
what they claim to Reinsurance
companies. Very few people have
time to make an examination into
the financial responsibility of these
companies. They can only form a
Judgment from what they see. The
assertions of circulars and agents
affordlittle satisfaction. Accompany
that throws $50, 700 in sight shows,
at least, that it intends to act in
good faith, and has something for a
capital besides buncomb. The dim
iRisRed number that make the de-
post may tend to increase the rates
/ of insurance, it is true; but the in
discriminate competition Of reckless,
irresponsible companies is still
Worse. driving. as it does, many of
the soundest companies from the
field altogether. This obtaining
money on false pretense5 ought to
be checked in some way. If any
other law can be devised by which
it can be etfectually accomplished
with lessinjurious results, weshebld
be glad to see it among the statutes.
The experience ofolder communities
has, however, devised no better
method. Similar requirements are
~