Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1882-07-13
CRAWFORD,s CASE.
An Insurance sca1per Beats the State In.
sursnoe Law

An Insurance sca1per Beats the State In
sursnoe Law.
A trial with rather singular outcome, all
things considered, took place in the munich.
pal court yesterday morning. On Friday,
George w. Hall, agent of the Under.
writer's Insurance, procured the ar
rest of man named Harri.
son Crawford, on the charge of selling in.
surance polices In the city without having
secured the necessary state authorization for
doing such business. The section under
which the arrest was made reads as follows:
"Sec- z. No person shall act as agent in
this state for any company not of this state,
in any matter whatever relating to risks, until
the last section has been compiled with, on
the part OF the company, and he has received
from the insurance commissioner an agents
certificate of authority stating that the FORE
going requirements have been complied with 4,
record of the issuance of which certificate
shall be kept in the office of the commits
sioper. Renewal certificates must he obtained
by agents within sixty days from the first day
OF January in each year. Any person acting
as agent of an insurance com pany or doing or
attempting to do business in any way relating
to obtaining insurance in thia state for any
insurance company or companies without
such agents certificate of authority, in viola
ton OF this section, or after said certificate
shall have been revoked, shall be deemed
guilty OF misdemeanor, and be subject to a
fine, on conviction, of not less than twenty
five (25) or more than one hundred (10O) dol
lars for each offense, to be paid into the
treasury OF the county where the offense is
committed. In case of the non.payment of
any such fine the court shall have the power
to punish the offending party by imprison.
ment in the county Jail for a period not ex-
ceeding three months. 1t shall be the duty of
the insurance commissioner to notify the
county attorney OF the proper county, in
writing, of any offense under this
section which may come to his knowI-
edge; and it shall thereupon be-
come the duty of such county attorney to at
once cause proceedings to be instituted for the
punishment thereof. All persons or agents
soliciting fire or inland risks in this state,
shall be residents Of this state; but this section
shall not be construed to apply to special or
general agents of insurance companies not
soliciting risks -
1t transpired in evidence at the hearing of
the charge against Crawford, that he was act
ing as the agent of o Pierce, a Chicago
broker. In soliciting for the sale of policy
OF insurance, Mr.. Crawford was extremely
careful not to use the name of any insurance
company, but would assure the party thinking
of insuring that when he received the policies,
a .nOy f"Clo uisSatlsucu Win any, tQoy would
not be bound by the agreement.
This, OF course. was an announcement
that the parry soliciting was acting outside
OF the state law, evadipg its provisions, but
nevertheless it is asserted that Crawford has
been doing considerable business, but no act.
ual proof of any transaction for the benefit of
any outside insurance company, aud Crawford
had to be discharged.
1t seems little strange that any one can be
encouraged to conduct such business. The
state insurance laws were passed and the state
insurance bureau was organized for the pro.
lection OF the insured, by requiring sllrom.
panies doing business in the state to have a
certain amount of capital, etc. Such accepted
companies upon first commencing business
have to pay S25 for charter, and yearly there
after 500 for statements, in addition to which
tax OF per cent. has to be paid upon all
risks taken, the revenue from this latter source
last year exceeding $4,000. II the law works
an Injustice secure its repeal. but so long as the
law STANDS honorable men should frown down
any such business as that in which Crawford
has been engaged.