The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1874-10-26
New Insurance Law.

Senator Proctor of Rutland, introduced
an Important bill in the senate on Thurs
day in relation to insurance companies of
otlrr states doing business in this state.
provides for the appointment of an in
sunncc commission, consisting of the Sec
retry of state and state treasurer, and for
b6 all foreign companies from doing
brness in this state unless they shall have
raid up capital, readily convertible into
cash, of at least one hundred thousand dol
las, and in addition to such capital, assets
equal to the full liabilities of the company
The insurance commissioners are to be au
thorized to accept service of process, in be-
half of companies, and forward the same
| TO the home office, or to any person in the
state designated by the company. Each
company doing business IN this
state is required to file in the
Office of the commissioners. n certi-
fed copy of its charter, and sworn state
ncnt of its financial condition, and when
the above conditions are complied with, the
commissioners are authorized to grant
license for such company to do business
within this state for which license each
company shall pay to the commissioners
fec of five dollars.
The commissioners are authorized to ex-
anime into the financial condition of any
company doing business, or proposing to
do business in this state, at any time; and
IT, in their opinion, the condition of the
company is unsound, they may revoke their
license, and cause notice of such revocation
To be published in a newspaper in each
county where such company may have
agents.
A tax of two per cent is laid upon each
company doing business in this state, upon
such companies net earnings during the
year preceding, which il TO be paid to the
state treasurer. In case of neglect of such
payment the commissioners have power to
revoke the license. Each company is re-
quircd to deposit with the state treasurer,
as security for all policy holders, stocks or
bonds of this state or of the United States
amounting to the sum of one hundred thou
sand dollars provided that the certificate
of the insurance commissioners or of the
state treasurer of any other state, that
such deposit has been made with them, for
the benefit OF the state, shall be sufficient.
In case judgment against any company
is not paid within thirty days after demand
has been made upon any agent by the Of
ficer holding the execution, the company is
rendered liable 10 suspension of its IL
cense.
In publishing this digest of tie law, the
Montpelier Journal says:
1t is very evident that some change in
our il surance law should be made. The
insurance department, as at present con-
slituted, Is net expense to the state OF
about two thousand dollars year, and this
sum, it seems to us, should be paid by the
companies doing business here. The pol
icy of taxing foreign insurance companies
is one which has been tried with good re-
suits in almost every state in the union,
Vermont being almost the last to adopt it.
The rates charged by fire insurance COM
panics have recently been largely raised,
and it certainly seems to be no more than
fair that some of this money should find
its way into the treasury. The work of
the commission is an important one in these
days, when SO many wildcat companies
are starting up, like mushrooms, all oyer
the country.