The Jeffersonian. [volume] (Stroudsburg, Pa.) 1853-1911, 1873-05-01
INSURANCE DEPARTMENT.


One of the most important acts of the
late Legislature of Pennsylvania was the
passage of law department in our State
! Government, to be known as the Insur
ance Department. The chief officer of
! this department. is known as Insurance
Commissioner, and the position has been
filled by the appointment Of Mr.. Mont,
gomery Foster, of Harrisburg, who will
enter upon the duties Of the office on the
first Monday of May next. The fuuc-
tons of this officer under the provisions
of the law are
l. To see that all the laws of the State
respecting insurance companies, are faith
fully executed by their agents The
Com missioner is invested with all the
powers and authority now conferred up
on the Auditor General in relation to the
licensing of the agents of foreign insurance
companies, and to file in his Office any
charter OF company now, or hereafter
required to be filled, aud on application
to furnish certified copies thereof.
2. When he finds that any life insur
ance company doing business in the State
has not on hand the net value Of all its
policies in force, clear Of all other libili-
ties, the Commissioner shall cause to be
published the fact that the affair of such
company are below the standard of legal
safety, and shall also cause the company
to cease business.
5. For every company doing fire insur
auce business in this State, he shall calcu
late the reinsurance reserve for unexpir-
ed fire risks, by taking fifty per centum
of the premium received on all uuexpiTed
risks that have less than one year to run,
aud pro rata on all premiums received
on risks that have more than one year to
run and in marine and inland insurance
he shall charge the premiums received
on unexpired risks as reinsurance re-
serve.
I. 1t shall be the duty Of the Insur-
ance missioner, after he has notified
a life insurance company, organized under
authority Of this State, 10 cease doing
new business until the net value of its
policies in force is equal to that called for
by the standard of safety established by
the State, at once to cause rigid ex-
animation in regard to all the affairs of
such company in case it shall appear that
there is DO fraud or gross incompetency
or recklessness shown to exist in the man
agement, he may, upon publishing the
facts in the case, permit such company to
continue in charge Of its business for one
year: Provided, There is, in his opinion,
reason to believe that the company may
eventually be able to re-establish the le-
gal net value of all its policies in force
At the end of the year named above he
may renew the permission, in case, on
examination, he is satisfied the company
is likely to retrieve its affairs.
10 short, the act gives the Commission
er the most extended authority in all
things pertaining to the business of the
insurance companies of the State and that
of the agents in the State of foreign com
panies. He has full access to their books,
papers, &c, either in person, or others
whom he may authorize to make exami
nations for him, with a view to investi-
eating the affairs of such companies. He
has power to institute prosecutions against
companies either through the Attorney
General of the State or such other attorney
as he may designate, for any violations OF
the law The Commissioners lso has au
thority to employ an actuary TO make the
valution of life policies, who shall be com
pensated not to exceed three cents Tor
each thousand dollars of insurance, to be
paid by the company for which the valua
ton is made aud there shall be paid by
every company to which this act applies,
the following fees toward dclraying the
expenses of enforcing its provisions For
certified copy Of character, $50; for fling
| the annual statement or certificate in lieu
thereof, $50 for each certificate Of au
thorily and certified copy thercof, 81 for
every copy OF any paper filed III the de
partment the sum Of 20 cents per folio
and for afixing the official seal to such
copy and certifying the same, 81 \; for OF.
! fetal examination Of companies under the
actual expenses incurred.
This law is designed purely for the pro
lection of the public against unsafe insur,
auce companies, and if the Commissioned
exercises full The powers vested IN him
it will not be easy for company to exist
in Pennsylvania unless its affairs are ~ a
safe and sound condition. II there are
any companies in the State whose affair:
are not up to the legal standard, they vii
probably be unearthed during the presen
year Scranton Repadiicdn-
Nixon, who killed Pfeifer in New York
hos bean sentenced TO be hung on the