The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1876-09-07
DEPARTMENT OF INSURANCE, STA.
TlSTICS AND HISTORY. .

q. AT the last session of the Legislature d
bill was passed creating department of
insurance, statistics and history, and it
was provided that the law go into immedi-
ate effect. The force of this department
legally consists of commissioner on a sal
ary of $4,000 a year. and one clerk at $1,000
The object of the department is to regu-
late the business of insurance, and to es-
tablish and maintain bureau of statistics
and history for the State of Texas. The
commissioner must see that all laws re-
specting insurance are enforced, and must
keep record of companies doing business
in Texas. Each year the commissioner
shall cause to be exhibited the net value,
on the thirty-irst of December of the pre-
vious year, of all policies IN force in each
life insurance company doing business in the
State, whether home or foreign company,
and in case any company has not on hand
the net value of all its policies in force,
after all claims against the company shall
be deducted, exclusive of capital stock,
LS ouoil hHOWh IuC ldCl, anu Sudll
require the company to suspend doing new
business; and the commissioner shall see
that such company has the net value of
its policies fully secured. From compa-
nies organized in another State, he shall
require the statement from the insurance
commissioner of such State.
/ For every company, doing fire or marine
insurance, he shall calculate the Reinsurance
reserve for unexpired risks by taking fifty
per cent. of the premiums on all risks hsv-
ing less than one year to run, and pro
rata on all risks having more than one year
to run. L Having charged against each
company the reinsurance reserve, add
ing debts, and finding the capital
stock, of the company impaired, twenty
per cent, he shall cause the company to
make good its stock in sixty days, or sus-
pend business, and thereafter the. company
will not be permitted to continue business,
except on reduced basis, unless the stock
islmade good. In case of a life insurance
company being suspended, he may permit
such company, where it can be shown that
no fraud is intended, one year longer In
which to do business and retrieve its
condition. Under all these circumstances
he is authorized to institute legal proceed
ings for the protection of policy holders.
Besides having this supervisory power, the
commissioner is fully empowered by law to
execute his authority, and must each year
report to, the Executive the business and
progress of his department. The establish
ment of THIS department throws around
heretofore unprotected people a show OF
security against irresponsible companies.
The former have been victrmized, and it is
Iull time that the State become dill
gent over their interests in these mat
ters. But while the new department is
calculated to throw this protection around
citizens, it has another noble duty before it
that of collecting and preserving the his
tory of Texas, an important matter, which
has heretofore been cruelty neglected. The
Governor has appointed Hon. v. o. King.
of San Antonio, to fill this important trust,
and this gentleman has just arrived at
the State capital to enter upon his
duties. From all accounts he is a man
uily suited for the position, and, while
he has made insurance study. he is re
fined gentleman of letters, and will conduct
the Bureau of History and Statistics with
L. L.