The daily gazette., 1879-02-14
For the WEEKLY GAZETTE.
INSURANCE COMPANIES.


INSURANCE COMPANIES.
The law in relation to Insurance Com
panies in this State are in singular con-
trast with the laws of other States. For
instance, in Delaware, the home COM
panles pay tax of one hundred dollars,
and companies OF other States can come
sere and establish agencies without one
cent of expense. At the end of the year
ii the agent or agents of foreign insu-
rance companies remain in the State and
continue in the business and make a re-
turn of the premium collected the pre-
vious year, they pay a tax of % per cent.
withdraws or the agent removes the tax
is lost 10 the State. How is II if a Della
ware Insurance Company desires to es-
tablish an agency in any of the adjoin-
ing States, say Maryland for inst lance,
they must file a copy of their charter,
and for that they must pay S25 %
Filing statement annually, ~ %
License, 200 w
Tax for each and every agent they
have in the State, 1000
Total, S255 90
And if they should have ten age Is the
tax would be 500 more. and formerly
their license alone was $500. But their
home companies work free of any license.
There is il law III Delaware that requires
an Insurance agent to pay annually a
license of $50 anu | have no doubt but
| the Intention OF that law was to make
each company to pay that same amount
| before they could TRANSACT business in
| this State. But what is the result? A
| gentleman opens an INSURANCE office aud
paws hi, license of $50, and secures the
| agency of twenty-five or fifty different
companies which all work under the
same license OF 500, SO thai the expense
to the company is nothing. There is rot
State III the Union except Delaware,
where an Insurance company establish
ing an agency does not have to pay for
| that privilege in advance, No matter
whether that agent transac's any busi-
| ness or not, the fees on tax must be paid
before the agency can lawfully be open
ed.
There are over one hundred Insurance
COMPANIES orghniZed in other States that
have agenclrs in Delaware, and If these
companies had to pay the same tax that
the home companies now pay II would
pu; about SlS,0OO annually INTO the State
| Treasury.
Why should We not have a law in Del
aware that would require the same fees
having agencies in Delaware that the
State or government from which they
come, would require of ii Delaware com
ing an agency i'll that State, or govern
ment And would it not be "A great pro-
tectlon To the pollcy holders in this State
If the Secretary of State or some 9th. r
STATE officer, was empowered by law 10
make an OH cial examination of the as
SETS aud liabilities of all companies offer
ing their polici' to The people whenever
he might have good reason to doubt their
solvency. Let the home companies pay
| for SAID q ~ at tha rata of t,..
dollars per day, and let him charge CON-
panies IF other States the same fees that
their Insurance Companies would charge
a Delaware company for slInilsr exami.
| nailon. 1t Seems to me that this is q
subject of such great importance to the
STATE, and some kiudot special legislation
is much needed on this subiect;that its
only necessary to call the attention OF
our legislator, TO IL, IN order to secure q
law that will se just and equitable to all
and that will secure handsome incre ast
IN the reve ples of the State. NJ,