Delaware state journal. [volume] (Wilmington, Del.) 1870-1883, 1881-02-24


insurance company doing business in this
State shall furnish me with O certificate of
valuation Of all its policies In force on the
S1st day of December Of the previous year,
made by the Insurance Commissioner of
either Pennsylvania New York or Massachu-
sets, and virtually prohibits me from grant
ing authority to any such company to do
business in this State II find that it has not
on hand the net value of all its policies In
force after all other debts of the company
and claims against it, exclusive of capital
stock, have been provided for. The pro-
visions of this law apply alike to all life insur-
ance companies, and no exception is made in
behalf of mutual aid and kindred associa-
tions. Owing to the character of their insdr-
ance basis, those companies cannot furnish
me with such a certificate OF valuation OF
their policies, and failing thereby to conform
to the requirements OF our law have been
compelled to refuse them authority
to do business in the State. They
are either life insurance companies,
or they are not life insurance companies. IL
they are life insurance companies, then they
must comply with all the requirements of our
law in relation to such companies, and one Of
these requirements is, as above stated. to fur
nsh certificate Of valuation of their poll
cies. But many of them deny that they are
life insurance companies, and some in Penn
sylvauia represent that they are not recog-
nized as such by the insurance department of
their State that they are simply required to
make an annual statement of their business
to the insurance commissioner and are subject
to his supervision aud claim that if they pur-
sue the same course here they have the rank
to enter our State. 1t ought. however, to be
borne in mind, that this annual report and
power of supervision were created by express
statute of the State of Pennsylvania, and
were the conditions of the exemption OF such
companies from the general provisions of the
or all IN
maintain, at all times, a reserve upon their
policies. Without such statute, it il more
than probable, that this annual report would
not be made, and this power of supervision
would not exist. We have no such statute III
the State of Delaware.
| find th0t the nature and character of
these companies have been determined by
judicial decisions in the State OF Pennsylvania
and also in other states, if | have
been correctly informed. For the purpose of
determining the right of the mutual aid or
cooperative life companies of other states to
transact business in Pennsylvania without
complying with the conditions prescribed by
their act Of 1873, for the admission of life
companies, an account was stated and case
brought before the Court of Common Pleas
of Dauphin county, when, after hearing, the
courts held that the National Mutual Aid
Association OF Columbus, Ohio was not an
insurance company, and that it could lawfully
tliiCate of the insurance commissioner ; and,
upon an appeal being taken from this judg
meut to the supreme Court, the Judgment of
the lower court was affirmed Ii then CO.
operative life companies are not life insurance
companies, L can have no jurisdiction over
them. | have no right to issue to them nor
do they need my certificate OF authority.
The position thus assumed Is certainly
anomalous and most peculiar. When they
desire to do business and effect insurance OH
| lives, they hold themselves out to the world
as life insurance companies; but when it Is
| attempted to enforce their contracts against
them, they deny that they are in any proper
| sense insurance companies, or that their poli-
| cles insure the life OF any one Tor any spucl.
| fed time. II would seem that some leglsIa-
| ton touching this matter is needed. There
Is no good reason why tho status of these
| companies should not DO regulated and fixed
| by law. If 1t be deemed proper to exempt
them from the obligation prescribed by the
present statute, TO deliver certificates of yalu.
alton of their policies, then they ought, III
every other respect to be held to the same
strict accountability as all other companies
| engaged in the same kind of business.
They should be required to furnish as a
measure Of public utility and safety, and in
proof of their sounduess and integrity, full
information as to their practical working and
It's results for 1t Is neither reasonable nor
just that they should, or suffered to conceal
their operations and be free from all control,
when other life insurance companies are sub
jeet to supervision and compelled TO exhibit
the fullest details of their condition and
affairs Such legislation could work no injury
to any good company and would serve
materially to protect the rights and interests
of the people from imposition and fraud.
would therefore suggest that the act in
relation to insurance companies be amended
so as TO bring the associations, societies and
companies referred to clearly within the
statute; allowing such exemptions and i'm
posing such restriction Us may be considered
proper, requiring them to deliver to the
Insurance Commissioner annually Il full
detailed statement Of their condition and al
other information necessary to set forth 4
full and far exhibit of their business anG
standing; and giving to him power Of super
vision over them, with right to revoke hi,
certificate of authority whenever decmet
) advisable.
RECEIPTS ANp EXPENSES.
The following is a summary Of the receipt
and expenses OF the department for the II,
months ending December 3lst, 1879
, Received expenses for ofti lid examing.
tlpn o. insurance company, III part pay
pt4 " reai; ftr M" mimi ''
i menl- and charters Ut So INSURANCE com
pauier, insurance Certificates and from
Ill olhtr teeOuret7 t.....-...t......s,... 1872 q
|
PAID expert as.istant in cxaninin;
insurance company on account. $50 &c
. To-" 'V' Pps."se "tl express 'lAfHer Jlt1
/ Tar,Ii,,,.. ,.,,, o,,
!, '''''+ - :,
i Exrrss ~ receipts over paymcrsiu 1872 1876
i For the year ending December 3lst, 1880
il Received .'Xpenses Tor ulitu examiua
=, llon in flil ~, .-t.........,.........s 1896
: Fees received for Ming annual statement
raj itt-u A tat.r ~,
D sourc,s ''''''',s' '''.' i'o' "N o'''' .9o
go I'''u.
q Total recent. ~ 80
j. Paid expert assistant in examine
e aud other it,cd,.ptt i axyan.,,s St25o5
+ Paid Every Eyrnipr Pibishn,r,
II Company, Daily Gaz.te and
= Sn--gX journal for advertising
e % ~ iueieh ,''.,'...''.:'t... 230.iI
II 1 Sr t'F po''sse' Express charges
e
u fetal payments, Si42i
Excess Of receipts over payments IN 1850 : 1886.
q, with snbmit. et ''i' "No'o payments are her
~ BiIiahayo Gnn,, i,,,,,,.-,,,, H., A., .1..,...-
!, M foIIows ~ w - ''4e "ei"' '''i'l
= For seal press, record and account bo ks,
le e,a.'oltE!, pAilks, VIZ; tlrr, Ute mutual
" g. '..',','
~ For advertising ....,.+.. 49,. -. 0s.
40 o,.,.,... -
n u 3'S D
l. w hiNl Dttts WIZ pe Iald before your Con
A. N't II .eo On C4nln9'
~ "o.t'u I"it "'tthtln'l 10 inc tact that u
le /. comnprafiveIy ins,,nif;,, ~ .'t,e
u recrivnd no III. St,t fr i,'.,s,,'' -,
b. r.,ti.tg J - I'm I'm "raut 't'iye cGl