New-York tribune., 1880-01-08
MARINE INSURANCE COMPANIES.

COMMENTS BY INSURANCE OFFICERS ON Tue GOV
ERNoRs SUGGESTIONS IN RELATION TO DEPos-
ITS BY FOREIGN COMPANIES
The Governor in his message suggests that as tEe
laws Of 1853 require foreign fire and life insurance
companies to deposit securities in the Insurance
Department of the State the question arises Tor the
Legislature ts determine whether or not
there is substantial reason for the foreign
marine insurance companies 30 be required 10 de-
posit with the Insurance Department certain
amount as securities against policies that may be
issued. The State law at present requires that
before foreign company is permitted to be-
gin business in this State 1t Is required
to deposit $15O,0OO with three appointed
trustees who must he responsible men, and ap-
proved by the Insurance Department. TINS amount
Is held a trnSt 10 indemnify p0hcy-H0idcIs
against any loss they may sullcr up TO that amount,
and for all losses above that amount 1t must DC
collected from the home Office.
Agents OF foreign marine insurance companies
claim that any change such as the Governor S,E-
gcStS would be ectI0nabie. as II w1uld lhVoINe
much time, trouble and extra expense 10 adluSt
claims through the Insurance Department, when
would be very cXacting to Obtain az the lnlnnic
particulars regarding such loss before lnfE
would authorize any payment. " in IHc
funds IN trust claimed that all these dihcultcS
are avoided. The agents also clam lhdi ny 4 raw raw
passed last Winter they are unjnstly dlscrmnated
against. The law referred 70 requires th"l bcIote
any fOrei On company can do business IN ms Ntatc
the entire capital must be paid in, while companies
chartered by the state are required TO have paid III
only $500, 600 before they can begin business
The managers of local marine insurance Colnpa-
MES or those chartered under the state law, say
that the amount required from forelg companies 10
be held IN uust, being only Onc-half of the re-
oured working capital of local companies, enables
them to work more chcaply. and tends 10 demoralze
tie insurance business. Ii is also quate Tor tho
risks they assume. 1t is also claimed that the
money held by trustees cannot be attached Tor any
individual loss hut that if it should be attarheda at
all receiver would havo to be appointed, ana the
amount divided prO-rata among other policy
holders who may have suffered loss. II
this trust fund were increased to S3OO,OOO,
and deposited with the Insurance Department,
the companies could then cOmpete successfully ana
on an equality and if the losses 50 heavy that
the deposit could not meet them, the home office
could be called upon. and the amount III trust be
left intact. The law passed last Winter, pot beng
retroactive, does not apply 10 the com
panics which had opened business here be,
fore the law went into effect. 1t il claimed
that the peculiar feature with some OF these com
pauies is. that only portion of the capital had
been paid ln the stockholders being held responsible
for the balance. The law has not affected these
companies at ALL but applies only TO those winch
may begin to do business here after ITS passage. Ii
is also asserted that of the companies claim 10
have much larger capital than they have III
reality.