New-York tribune., 1885-02-07
LAW THAT IS OFTEN BROKEN
INSURANCE MEN SEEKING ITS REPEAL.

INSURANCE MEN SEEklNG IIS REfEAL"
AN IMPORTANT MOVEMENT TO ALLOW GREAT
BUSINESS HOUSES TO PROTECT THEMSELVES.
sDo you know" said well.known insurance
broker to TRIBUNE reporter. that there are many
business concerns in this city which must either 90
without largo percentage OF the insurance tney
need who are guilty OF msdeea%nor no. ,v m
last May repealed. l.. X. kennedy. oi Wseu T1
Kennedy, is at the head of the movement ne ol,t
law was passed at the SUGGESTION oi nrov;ded
flat no Insurance company organlZed uhuer tne
Jaws of any other State or country sD0nid ~
insnrancc laws OF New-York. The fourth sectiOh
reads as follows: -. r. ,o,s y,
Any agent, broker or person acting for hmseit OF
I'm behalf of any other person In soilcltrg OF pro
curing policies risks on property located ~ th
State or in any manner aiding the transaction m oi
business b, any company that has neglected or re-
fused to comply with this act' snail oo oeoiiou
Mr.. McCalis purpose was to put an end to under.
,Ihe law # Observed would do much more than
this A large number of business men found III I'M
possible to procure the necessary amour, M oi nf
this State. They had to break the law ana take 2
chance of going to prison. or accept the chances OF
fire while nsutfcicntly insured. 1nis law, IL is
estimated, applies to five hundred firms In this
city and Brooklyn alone. Though the law has been
freely broken il has caused much expense ana an
noyance to propertv-owners and insurance men,
Much business that might otherwise have been
transacted here has been done III New-Jersey In
candestno way Mr. Kennedy sad %hsn ,n@b% Nbec{
was good, but the scope of the measure was wiuer
than could be seen at glance perhaps, ana TN tne
results If its provisions could be strictly enforced,
would be most disastrous. The chief sufferers are
not insurance men. but the great business concerns
of the city and State. Such a law might answer II
the companies doing business iii the state conld
furnish the required amount of insurance. but they
cannot Mr. McCalPs attention was drawn to the
oppressive character of the law some. time ago. lie
conceded its iulustice'and promised TO cooperate
with ms In obtaining relief from the legislature
al submitted q proposition to Mr.: McCall whch
he embodied in BILL draft of which he sent me-
interests to obtain insurance OUTSIDE OF the Stats
will be recognized, hut this right VIII be cohhhed
TO certain classes of risks That portion OF the law
which makes il necessary for outside companies
who wish to do business in the state 10 con-
form TO the laws of the State will remain III
force and will he made even more stringent but
the Supern tendent of Insurance vii! have right
10 issue licenses to responsible bIOkerSt0 procure
insurance in unrer resented companies. They will
be restricted to such risks as owners hrms corpora
tons or individuals shall certify on oath are OF
greater value than all the insurance obtanable in
represented companies will cover. There are con-
Germs III this city that require million ana haIi
of insurance. They are frst-cass risks. Ihey can
not obi tain that amount in represented companies
To secure themselves they are now compelled TO
lTeak the law The bill which will be presented
this week saws that they shall make affidavit that
surance here and have failed. One copy OF the
affidavit must he fled with the County Clerk and
another copy with the Superintendent of Insurance.
who will then give the required permission TO pro-
cure the requisite insurance from any licensed
broker. The latter must pay license of 500. and
in January make staten ent OF the total amount of
premiums and on this amount pay a certain tax to
the State Insurance Department.