Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1889-07-11
ms. KANoE m EN- HhLp.

& commissioner Fools Prosecution
OF Illegal losurance-IDtercs
Examination Before Judge Bail
To-day.
Before Judge Ball Tuesday State
Insurance Commissioner Isaac N. Fooks
appeared TO prosecute certain insurance
agents OF this CITY for granting policies
from companies that had not been
authorized to do insurance business in
this State.
Deputy Attorney. general Thomas Davis
prosecuted for the state. large mum.
Der of representative insurance men were
present, including Ferdinand l.. Gilpin, |
L. P. Back, E a. Van Trump, Joseph
N. Mather, A. II. Smith. John Mcleod |
and others. The case of Thomas F Han.
Ion, No. 8 East Seventh street, insurance |
agent, was called frst. William T.
Lyman. E appeared for the defence.
The defendant wac CHARGED with issuing
policies OF the Pierre Fire and Marine
Insurance Company Of Dakota, and the
Kittaniug Insurance 90. of KitAning Pa (,
and the American Mutual Fire Insurance
Company, tou'h Bend, Ind, 81 ,Ou0
sach, and receiving premiums thereon,
none of these companies being legally
authorized to do business in the State.
NJ. II. Tiighman, of Laurel, Sussex,
testified to having received are policy
of the American Mutual for $1,000 on
bis property / Laurel. He got the
policy by mail from Agent Hanlon. He
mad never seen the agent but had got
hold of some OF his circulars and there
upon had written to him. He paid
$40 premium aud the policy was sent
him. He obtained two other policies at
similar rates from Mr.. Hsnlon. After
gaining possession OF the pol 'cies Thigh,
man wrote 10 Commissioner Fooks who
lives only 16 miles away in order to got
bis opinion OF the reliability of the
comp ,nies with which he had insured.
I,aac N Fooks, insurance commits.
sioner for Delaware stated that on receipt
OF Iiighmsn's letter he wrote to Agent
Hanlon telling him ne must cancel the
policies and return the premiums or file
q statement in legal order and obtain o
certificate for the companies for which
he issued the policies.
The witness stated that he proceeded
against Agent Hanlon under section of
the insurance act. Commissioner Fcoks
Juld not say whether the custom existed
in this State for insurance agents already
l
panies which they represented to allocate
tue whole or any part OF an application
to outside com psnies, under the acc dent
If they Che local insurance mem being
unwilling to accept the application or
risk.
The commissioner told Judge Ball that
none of the foreign companies already
mentioned have taken ont certificates in
Delaware.
Mr.. lyman was DESTROYS OF demon
stratiDg that it Is customary in this city
for insurance companies to spread risks
that they cannot take.
Deputy AttorDy general Davis con
4 tend, d that II even this were proved il
! would be no defence in the present case
! The only line of defence IL to show tn,
holding OF an insurance certificate. Mr.
Lyman replied that he wished to indicat,
. the fact that his client has been einRleC
: out of the whole class of insuran 20 mel
. OF this city with whom It has always beer
: customary to divide risks with OUTSIDE
: companies.
!, Judge Ball-"well, what do You wist
to infer"
Mr.. Lynam--"Thst simply as dehnit
e1tenuating circumstance"
= Judge Ball-''It would be no defenc
under the law"
V Agent Hanlon was accordingly require,
! to furnish bail Ia $500 in each of tn
y three cases for hearing in the uppe
court.
- w. Fl. Olowney, q secretary of III
= National Security Union of this city wa
;, next cited for goliclting business an
~ granting certificates for his oompan
!, which has not been authorized to do buI
~ mess in this State. William T.. Lyman
ESQ.,, appeared for the defence, an
:. Deputy Attorney general Thomas Davi
10 prosecuted. It was shown that Olowne
received premiums from John and igne
:, Lavender, No. y, Irving Place, and als
~ from Edward Perry. Mrs. Oavende
~ paid 10 cents week and her husban
y, paid 25 cents.
u Commissioner FookH testified that IL
20 20 National Security Union had not flied
statement OF its financial standing in b
50 office and that 1t held no certificate fro
y him to do business.
- Mr.. Lynam's line of argument was
- show that the company under disoussic
=. Ia charitable or BEN Fl sisl organic attic
y and Is therefore exempt according to Ia
from such requirements as the insuran
20 commissioner referred to. In his test
~ mony Mr. Fooks did not see the distiu
o. ton between the secretary of such cor
~ pRny as that represented by Clown,
u, and an agent of it. He thought d
se latter was not complying with the obiec
TO and purposes as SGT forth in the chart
and Of incorporation. He consider,
the National Security Union, who
receipts or premiums are signed by L.
Ne Buck, supreme secretary, and Jol
Mcleod, supreme president, is doing
In accident business as oontrasted with
m charitable or beneficial one. Mr. Foo
"a. conceded that the receipts or premiums
the company do not excet d the ohsri
n. right but that Mr.. Clowney who is
~. secretary exceeded his rights in solicit
m business.
on In reply to Mr.. LYMAN, Mr.. Fooks Sc
Al. that the United Workmen and ott
.ad charitable and beneficial organizatio
M did not file statement with him, out
IA commended that Clowney is soliciti
he business as an insurance agent. The "
,cs ness did not know of any beneficial
no ganization that solicits business, q
~ claimed, as insurance commissioner
An his opinion). that Olowuey has violSt
nd sections 6 and OF the insurance ena
hIa ment.
mr. John Mcleod, supreme president
nm the company and president OF the hos
oas of trustees, stated that the National
1sd curity Union is incorporated as priv
mr.. charitable organization. A membersl
ed fee on age is paid Application is ma
ers through a member, who is thus cons
an tuted q secretary, and, following medi