New-York tribune., 1890-04-14
TO PROSECUTE INSURANCE BROKERS.
POLICIES IN THE NAME OF FRAUDULENT AHD
xox-ExIsTENT COMPANIES COMMON
IL CHICAeO.

chioa~o A,rl ~ (spccian-In an article on the
,,Io.aIo Insurance frauds that practsed on the
oono of Illinoi, and other Western states by Wild
cats companics The Chicago Tribune to-day says:
Thirty five insurance companies dohg an iiiee'h
business in this state have gone uilder III inc aso
wear: Int. notwithstanding the fact that S4oooco IN
nlaccd risks became void. and $1,000 in premiums
Maid bv pollcvhodors swallowed np there are sn
thirty companies with insufficient capital 10 secure
State license for writing policies in Illinois, The Con-
tinental Mutual Insurance Company, OF Michigan
civ Gsicd not long ago, and many OF It's daily re-
port, from agents in this and other states were p"r-
chased by persons interested IN the prosecution uhder
STATE laws Of those who had placed the rlsks. Inc
hcautv Of these reports as foundation for prosccu-
tion consists in the fact that, upon their backs arc
uttop thc names Of the other companies having risks
unon the propertv insured Many of these companies
have no right to do business In these sacs ana ~ the
agent has in each signed the r;port acton can
he brought against him for writing policies in the I'M
authorized organizations The fact that many "f the
companies which have gone ont ot business p'rior'o
we're declared unsafe from time to time by standard
insurance tourua makes II matter Of surprise that
:, many solid business firms OF Chicago should have
placed their risks with them The purchased reports
show that some Of nc heaviest losers in premiums are
men whose sacacty i atested 10y accumulated mill
ions 1t is charged that many policy holders are not
aware that the companies In whch thcy arc lhsueu are
deunCt, and that nOtllnr sH"it va VIM "''N"'~
the fact TO them.
.Thcrc arc dozen brokers IN Chicago who cor
respond with the companies which they repic'ent
under assumed names. and they not only ho)dwnk
thc policvho;dcrs ly declaring the companies sound.
Lut pocAct all collcctablc premiums. making no re
turn, 10 their principals. Certain pcnnsy wanna
concerns make practice oi rcfl,lhg IT, pay lp''c'.
Against them more than 100000 In judgments have
Lccn secured They still doing an Illegal business
in iIlinoi. The laws Of the keystone state upon
tLe sulicct arc framed that the companies ilueh
tho fOmmlC-l
them 80 quit business: ~ A.,
Attorney General Hunt. Of Illinois. has placed the
nrosccuflou nf Chicago I ndc ground Insurance agents
IN thc hand, Il certain lawyers. and an insur,.l'
cXnolt hes secured mass of evidence against tlcNi
psner, will be served npon about nifty brokers. who
viii he a.acd to explain their methriS 4 jury.
Nj The least Interesting tcsfImOnsy for tlc state
will be gwen by fcw of the agents tcns'l,cs whle
orcncr> Will be condoncd. Policies are >t!ll written
In chicago FOR English concern that has paldup
rapltal of thirty i've pounds although with 'omethins
more upon paper. and that ha- made n" return of ltS
nauclal condition since 1855. The Acknowledgements
of Mexican ard Wisconsin. will pr'~c'uic brokers IN
their states simultaneously with the action taken In
Illinois.