The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-01-11
The INSURANCE Law.
Its Alleged Ambiguity Compa-
MES Too Much Restricted.

OLYMPIA, Jan. i0.--The secretary of state,
as insurance commissioner, makes a re-
port showing the manner in which the
business of the Office has been conducted.
Referring to the insurance law. he says III
one place
PerpleXing questions have arisen rs To whether
the law apples solely 10 IRE and marine insur-
ance business or TO all kinds OF insurance. Part
OF the sections prescribing details refer specific
ally TO fire and marine business only, while
sections : $ TO- II. T. II. II, IL. 10. -. -. 2,
and ~ seem TO coyer all kinds Of insurance.
Agents of life aad accident Insurance companies
inquired afxiousiy Il thev we're amenable to the
law, some OF them having aa impression
marine Insurance business. Section d.
reefs that "The commissioner must cause
every corporation or person before engaging III
the business OF insurance in this state TO file in
his Office etc. After careful study. section 8
with oil that 1t implies las been enforced. The
law should DC Amended so 10 leave it, mean
ing clear. aud the measure OF financial RESPONSE
biity required OF life and sceideIt coEpanies
should be specifically defined 4 particular
source OF annoyance has been the claim insisted
upon by mutual companies that the law does
not apply to them. Osse such company, organ
lied under our territorial law, has been specially
persistent. Its officers ana stockholders cor
version OF the law and, after repeated and
positive official information that they were
on exactly the same footing rs all other
insurance companies, requested that the case be
The request was denied Ter the ren. on that there
WIS nothing TO decide. No question OF con-
strucuou presented Itself, nnf 10 possible
ground Tor exempting mutiwl companies could
be found except ia oTen acIianCe Of the law s
plainest provisions some OF these people
claimed TO have been informed by members OF
the last legislature that il hal not been in
tcuded TO make the law applicable TO mutual
companies II seems siFaHae that persons
intelligent enough 70 be memsers Of the legisla-
ture should make statements of this Kind in the
absence OF any exemptions whatever In the law
itself II is safe to presume that the legislature
would have. exempted mutual companies had
such intention existed.
In compliance with sectiop "a, certified list
OF insurance companies authorized under the
law during the first quarter Of It's eIistence was
sent out 10 each county clerk in the state on
September 80, That LIST showed companies Of
fcially registered and authorized TIE second
quarterly statement, now being sent ont, shows
& total OF I27 companies authorized UP to De-
ee.nber 81, 1890.
The provisions Of section II. respecting a
record OF all the business and official acts OF the
department, have been faithfully complied with,
and an inspection Of the same Is cordially in
vited There have been collected as follows
Filing papers, and certifying copies 81 ia IS
ExaniinEtion Of eompauies, aud coli
Iected from them. at s. per day. 20 90
Appropriated b. the les stature. ...,.... 800 90
Total ............. ........si ,s64 s.
OF which the following has been paid out:
TTf raV3 ri t sspsns postage record books 4
etc. -. -. :. - 1eo 20
Paid 70 state treasurer. ..........e....... % %
Leaving an uRexpeEGed balance Of 1853 IS, to
be applied to future current expenses.
1t is believed that THIS department viii be
hereafter, even under the n2odsrgte fees now
prescribed By laT, fully eel sustaining, With n
salary allowance of $l,so1 per alnuIn to the
assistant.
4 rccapitulaticu Of recommendations as to
amendments to the law found necessary from
practical experience, is as follows
First-Make the fec and compensation ques-
ton clear ard plain.
seeond-Direct specifically as to lffe and acci.
dent insurance.
Thisd-Presefibe authority for the commits
sioner 10 regulate the sale keeping IF securities
accepted as part of capital stock.
Eoarth-Allow more latitude for securities al
companies organized outside OF the United
States. Ire limits ns lgcsv prescribed aTa too
narrow, are unnecessarily bHgdens0me np9n the
business, and have thus FIR resulted IN Keeping
out some of the strongest companies in tho
world. simply from their inability to procure
sufficient quantities Of the four Kinds of bonds
specified.