The daily gazette., 1879-02-14
FOURTH EDITION
THE STATE CAPITAL.

THE rRoPosDD ACT FOR THE PRorEC-
TIoN OF EOMR INSURANCE COMA
NIKs-LBGIsLArIvE WORK AND OTHER
MATTERS.
Special Correspondence otthe GAzKTTH
DOVER, Feb. II, 1879.
1t was only day or two ago that the
editorial columns of the GAZETTE con-
tanned an allusion to the heavy tax which
this State imposes on her own insurance
companies, while outside companies
doing business in the State have to pay
comparatively nothing; and already a
bill is in course Of preparation that will
not only remedy this unjust discrimina-
tion, but afford other protection to home
Insurance companies. 1t is really sur
prising that this commission on part of
the General Assembly of Delaware has
existed so long wheE the States are de-
Tending their home corporations by i'm
posing at least an equal tax ard amount
of license fee upon domestic and foreign
companies, and in many cases higher
tax, unles the latter companies shall
show and prove that its capital is equal
to the amount Of capital required OF the
State companies. | have before me u
work entitled statutory Requirements
Relating to Insurance" In this is TO se
fosnd some facts that show the unreason-
able generosity exhibited by Delaware
toward outside Insurance men. Massa-
chusetts has law which provides that
"every agent of every other company
except life company located in State
which does not impose taxes upon the
premium receipts of Life companies of
| this State doing business in such other
State) shall give bond with security for
the sum of two thousand dollars for the
| true return of all premiums received and
assessment collected and pay the tax on
| the same. Every COM
pany except foreign companies) shall
| pay a tax OF 2per cent upon all pre-
miums collected in this State, and every
foreign company shall pay tax of 4 per
| cent, unless it shall show that it has
| United States securities properly deposit
ed; in this case the tax shall be 2 per
cent"
| Maryland imposes license tax of J
per cent. on all premiums exceeding the
| license fee. Other States have statutes
similar to the two just mentioned. Della
| ware, however, is tar more favorable to
outside companies. She charges agents
of such companies a license tax OF $50,
and ,; per cent. on premiums, while the
companies within the State are required
| to pay 500 license tax
The bill which have mentioned as
being In preparation is favorably spoken
ef, and will be offered before long.
1t will provide that the Secretary OF
State shall have the supervision of all in.
surapceycompanies in transacting any
business in the State, and will make il
unlawful for any insurance company or
agent of any company, whether In the
State or out of it, TO transact any business
without certificate from the Secretary
of the State. All insurance corporations
doing business in the State, organize
under the law of any other State or Gov
ernmept, shall annually pay the samt
fees, licenses ali taxes that the said State
demands OF companies within her Dor
ders. The Secretary of the State shal
examine the accounts of all compahie,
and publish the result. BY another
clause the act will provide that wher
any State refuses to admit any Delawar,
company which shall prove its solvenc,
by Secretary of States certificate ant
otherwise, the Secretary shall at one,
proceed to revoke the right of all com
panies of that State to do business in tn,
State of Delaware.
.