The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1891-02-18
INSURANCE LEGISLATION.
Some Suggestions ne TO What Changes Are
Needed.


To TIE EDIToR--lSir: House bill No sos,
introduced by Mr. Kern, abolishing all
grand juries and providing for the pros
ecution of crime and misdemeanor by
affidavit and information, should have an
other title IL should be entitled an act
10 nulliiy the constitution OF the United
States, or an act TO encourage crime and
misdemeanors in the state of Indiana and
10 exempt criminals from punishment, as
abolishing the grand jury would make the
punishment of high crimes and INSIDE
meanors impossible.
If Mr. Cullop's insurance bill becomes
a law the people of Indiana will be in
iured. There is legislation needed in re-
lation to insurance, but not on the line OF
the Cullop bill.
No company should be permitted to do
business in Indiana which has impaired
its capital. nor should a company be per-
mitted 10 do business in Indiana when its
net or ledger assets are less than are its
liabilities on policy-holders accounts; nor
TO include among it's assets premium notes
given for premiums falling due, under
original contract, within an extension
term granted in lieu OF paid up policy in
exchange for policies on which payment
of premiums has been discontinued; nor
TO include in any mortgage, taken for loans,
the notes given for premiums on life in
surance policies; nor to include among its
assets premium notes given for premiums
falling due in every policy year other than
that in which the note is dated nor to allow
any insurance company TO do business in
Indiana which has not on file in the Office
OF the auditor oil state a copy of its char
ter, which on its face shall show
that il has legal corporate
existence at the time certificates
are issued TO its agents authorizing
them 10 do business in Indiana. The law
should be amended authorizing the
auditor of state 10 issue certificates at large
10 general agents and superintendents of
agents OF foreign insurance companies,
unless a certificate granted an agent under
the existing law permits him to do bust
ness in any part of the state. There are
companies now doing business in Indiana
that cannot be admitted to do business in
New York because of impaired capital.
The reports on file in the auditors office
show that but short time since the liza
bilities of one foreign insurance company
were more than one milton dollars in ex-
cess of its net or ledger assets Most COM
panies take no premium notes for pre-
miums falling due within an extension
term, but there is one company doing
business in Indiana which probably has
more of this kind of assets than its entire
surplus on policy-holder's account. There
T.
doing business in Indiana which makes
farm loans, insures the life of the borrower,
takes his notes for the premiums falling
due within five years, and adds these notes
TO the mortgage as Junior" mortgage.
In event OF the death of the insured within
n certain time the policy cancels the
"senior" mortgage, but leaves the "iunior"
mortgage in full force, which may be one
half the amount OF the original loan. AS
there is no law to compel a man to keep
his life insured, premium notes not given
for the premiums falling due within the
policy year in which the note was given
should not be admitted as assets. At least
one company doing business in Indiana
takes notes for premiums falling due
within five years from the date OF some of
its policies.
On Aug. Z, 1883, the auditor of Indiana,
S''', =" 'NP'y w al iiidu'J iei"'i"k
10 the legal corporate existence of for
eign insurance company, then and now
doing business in Indiana, wrote that
there were no records on file in the audi
tors office which would enable him to
say whether the company had legal cor
pOrate existence or not and the said COM
pany has not since filed, nor can il file
copy OF its charter, which on its face will
show that it has legal corporate existence.
The present law requires the auditor of
state TO issue certificates to an agent of
foreign insurance company and the agent
to file the same in the Office of the clerk
OF the county in which he shall establish
his headquarters. The practice is to re-
quire an agent to take out a certificate for
each county IN which he may do business,
but perhaps it was not the intention of