The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1875-12-10
OurInsurance Laws.
Editors of the Register.


A short history of our insurance laws
seems to be of interest at this time es
pecially as the subject is now engaging
The attention of the Legislature. Under
the provisions OF the Code, chapter "a,
every foreign insurance company (Which
means companies from any other State
than West Virginia. was required to de-
posit with the Governor $4,000 in L. 5.
bonds as II pretended security to policy
holders in this state, before it could be
authorized to transact BUSINESS here. The
real intention and practical effect of this
requirement, was TO drive out all the tor
eign companies, and give the field entire
lv to our domestic companies. After u
protracted fight and thorough discussion
of this law, it was repealed by the legis-
lative session of 1928, and fortunately
lust in time to save the city of Charles
ton. or a great part of it, from entire OBJ
liberation; for, Immediately after the re-
peal of the deposit law" referred to, quite
number of strong foreign companies
came into the State and fortunately COW
cred great portion of the property of
that city, which, very soon thereafter, WAS
visited by two or more very disas-
trous contlagrations, and but for the fact
that these companies paid their losses
promptly, would not have been rebuilt.
A few of our domestic" companies had
risks in the property burned by these
fires. but, with the exception of the
Franklin Company, Of Wheeling, we
learn that none of their losses have been
paid; so thut If that city had been de-
pendent upon domestic insurance it would
remain in ashes to this day The act of
1872 opened up field Tor foreign COM
panies, from which they had been SO long
virtually excluded by our statute, and a
great number Of them rushed In to try
their luck, some of which succeeded in
doing profitable business, while large
number, finding it Improbable, have
withdrawn, leaving comparatively a
small number of foreign companies now
here. The fees received by the Auditor
from this Unexpectedly large number OF
companies, may have aggregated quite n
handsome addition to the revenues OF that
officer. With this we have nothing 10
do, however, as it does not come within
the proviacc of our article; but the limited
number of companies which will continue
to do business here precludes the posi-
billty of these fees atiording moro than a
reasonable compensation for the labor re-
ouired in proper supervision of our in
,urance affairs IN future.
The act of 1873 authorizes the Auditor
10 examine into the affairs Of any for
elrn company, about whose solvency
there is reasonable doubt, but does not
authorize such examination as to dOmes-
tic companies. 1t also requires foreign
companies to have at least 100000 of
actual capital, but it does not require do
mcstc companies to have any capital
whatever. IttixeS penalties against foreign
companies for neg lect or refusal To COM
nlv with our laws in the matter of hing
q sworn statement Of its affairs, the pro
curement of a certificate of authority
based thereon and the publication there
ofin the newspapers for the information
Of the public; but it does not nix any
penaltv Tor such refusal or failure us to
domestic companies. Now, the discrep-
anc,es here noted furnish the principal
objections to our present statute, and the
reasons why wildcat companies hnd so
convenient a field here for their domi-
cile. If domestic companies were sub
iected to the same requirements and con-
ditions as foreign companies are. then
the whole source of our troubles would
be remedied. The House bill No. 10
now pending in the Legislature, seem,
to meet all of the requirements noted
and has this especial advantage over the
Senate Bill No. Us on the same subject
that it requires insurance companies tt
have 100000 capital invested IN such Sc
curities as theiinsured can find and real
ize on; while the Senate bill require