Daily globe., 1883-05-14

1nc AL usI6r WAO aCVrlDuJsQ the cause OF q
certain FIRE to frictien-the rubbing ef a
thousand dollar policy on six hundred
dollar building! 1t is just this sort Of
friction which causes hRHdrsds of fires
every year. Fer all such losses the COM
paaies alone are to blame.
In this state the insurance companies
lost during the last year $1,177,477.21,
which is more than they were justified in
losing and probably twenty per cent. more
than they woEld have lost had the business
been closely supervised by men we'll &C
quainted with the ieid-thoroughly versed
in respect to the standing of individuals,
characteristics of localities, ETC., etc.
Agents engaged in this sort of work be-
come possessed of vast fund of informa-
ton, which is invaluable in prudent under
writing.
INSURANCE LEGISLATION.
The insurance legislation Of last winter
is summarized as fellows:
1st. An act amending the law authoriz-
ing the formation of township mutual
insurance companies, making it general
the state over, instead Of csnGning it to
certain counties named in the act, and liza
iting the extent of territory allowed to be
embraced in any ere company to twenty
five towns.
2d. An amendment to the law of 1881,
relating to insurance companies other than
life, fire and marine, authorizing the ad-
mission of fereigR companies Oh q one
hundred thousand dollars deposit in
another state.
Sd. Requiring fire insurance companies
to file their annual statements within
thirty instead OF sixty days after Decsm-
Der S1st Of each year, and life companies
within forty days thereafter instead of
sixty. There are, probably, not to exceed
half dozen habitually slew companies in
the entire list Of companies doing business
in the state. The object of the amend
nent is to bring these companies to tine,
SO as not to unnecessarily delay the work
of the Office.
4th. Amending the law relating to the
per cent tax ON premirms, so as to apply
it to home mutual insurance eom panies,
which hitherto have been exempt, the same
as to other insurance companies, except
ing only the little township mHtuals. The
companies dffested are the Millers' and
Manufacturers of Minneapolis and the
Minnesota Farmers Mutual of the same
place.
UNLAWFUL INSURANCE..
Insurers in companies which have the
financial strength to comply with the laws,
says the insurance commissioner, and which
have been duly authorized to do business
in the state, May feel reasonably certain
that all claims arising from losses uRdsr
their policy contracts will be duly paid.
This cannot be said of the unauthorized
companies. Their claims to public conf
deRcs are, Paratively, very small.
Their fpancial standing is not reliably
known here; they are not amenable to the
mandates of our courts, or the official su
pervision provided by the laws of the state.
Property owners who patrsnize them take
large chances of being beaten and defraud
ed in case of loss. Undoubtedly low rates
are obtained from them-lower than from
the authorized com panies-but it is "a
penny wise and pound foolish" policy that
would sacrifice sound indemnity to a small
saving In premiums. These companies
have no legal standing here whatever
they cannot solicit a risk in the state with
out violation of law-aud whoever acts for
them or represents them to obtain insar-
ance, subjects himself to arrest and severe
punishmenb. The citizen may send his i'm
surance out of the state if he chooses, and
thus place it with Pani6s which cannot
lawfully come into the state after it. That
is his personal right, and there is no way
to prevent it.
But no one has right to act as the agent
here Of unauthorized com mpanies, or to sin
any manner, directly or indirectly aid
them in transaerirg the business OF insur-
anae." All SUCH violations of the law
should be promptly reported to this office.
The cooperation of the fraternity is iRvit-
ed to secure strict enforcement of the
law in this respect. It is due to the COM
plying companies, to the companies fulall-
ing the conditions of the law and paying
fees and taxes for the privilege of doing
business in the state, that the law
against underground" insurance should
be strictly enforced.
The repsrt is replete with facts and sta
tistics of value and interest which, for lack
of space, we cannot further notice as this
time.