The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1881-02-02
PROTECTION FOR TIE PEOPLE

y
Perhaps no single act Of the General As
sembly OF 1877 has resulted in greater bene-
/ fit TO the people OF Indiana than the act Of
March of that year, entitled an act Ia
regulate foreign Insurance Companies doing
business in this State. This act contains
three, and only three, propositions. The
I first of these is a change Of that provision of
the old act which permitted Companies hay
ing capital of 500, 900 to do bushes in the
State. The new law changed this so as to re-
| quire the Company Go have capital of at
least 100000. The second provision
clothed the Auditor of State with power to
examine or cause TO be examined every de-
tail of the business Of any Company opcrat-
ing in the State, whenever, in his judgment,
the interests and safety of the policy-holders
of the State should require it, and with the
additional power TO revoke the authority of
any Company TO do business in the State,
when the conditions prescribed by law for
granting it no longer existed Previous to
the act of 1877, foreign Insurance Companies
had been required 10 file semi-annually a
copy of the statement of the condition
of the Company with the Clerk of the
Court of each Countyin which they did bus
mess. This one single copy OF the statement
filed in the Clerks Office was the only infOr-
nation required of Company as to its con-
dition. The third proposition of the act of
1871 so amended the law as to make it the
duty of the Auditor of State to cause copies
OF these sworn statements TO be published in
the two leading daily newspapers of the
State having the largest general circulation
therein. All three of these provisions of the
act of 1877 were designed to work together
in the interest OF and for the good of the in
surfing public of the State, aud became a
law with only three senting votes; and it
is but due to truth e. Il experience to say
that more than the most sanguine hopes
and expectations of the advocates of the
measure have been realized. One of the
beneficial effects of the law was that under
its provisions large number of Companies,
most of which were weak and unreliable,
were Obliged to withdraw from the State.
thereby giving the people only the better
and safer Companies In view OF the gen
eral crash that has swept over the coun-
try, 1t is a significant fact that not single
Fire Insurance Company has failed, while
having risks in the State, since the pro-
visions of this Law have been in force The
number of Companies unable to stand the
scrutinizing tests OF the law, and which have
withdrawn from the State under the enforce
al,
one-third of the entire number doing bust
ness in the State. OF these, twenty-four have
since failed or ceased to do business, and
but for the healthful provisions OF the act of
1877. the people OF the State would to-day be
mourning the loss OF thousands of dollars
paid to these weak and failing Companies,
which could not stand that the light of day
be let in upon their real condition. II will
certainly not be in the interest of the people
of the State that any of these safeguards and
/ preyentiyes OF imposition and fraud which
are just and proper in themselves, and not
pie cent, shall be taken away. Neither
the National banks nor our State and saw
ingS banks, in fact no other institution OF
interest of any kind. either foreign or home
which is seeking the confidence and business
OF OUT people, is asking that its condition be
exempt from public view. except the single
one Offoreign Insurance Companies ItwoulC
seem that an interest which, during the foui
years which have elapsed since the passage
Of this law, period Of the most cxtrem,
hardship ever visited upon our people 81
managed as to take out of the State ant
away from our people forever, more thar
ire millions Of dollars, lesSening thereby tn
money circulation and the taxable wealth o
the State justso much. to be made upandp ai'
by the citizens, might afford to pay sum les
than three-sixthsof percent. of itsprofits. il
: order that their valuable and profitable Gus
toners of the State might have neceSsar
and proper information as to the condition
and merits of these Companies solicitn
! their patronage.