Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1893-03-14
A Bill Being Prepared by
Judge Edwards
To Protect Territorial
Policy Holders
Against Foreign Companies In
clined to Litigation.
Strange as 1t May Seem the Meas
ure Is Approved by the
Insurance Men.

Judge Z. j. Edwards is preparing for
introduction into the council, possibly
today, bill throwing important re-
stIictions about insurance companies
doing business in this territory. The
effect of such law as Judge
Edwards proposes to make is
peculiar. The primary object is
to protect policy holders OF insurance
companies doing business in the terri
tory. 1t would therefore in the nature
Of things appear that il is directed
against some interest OF the insurance
companies. Representatives OF the
companies doing business IN this city
have been canvassed and almost with
out exception express their approval of
the measure.
The title OF the bill is: IAN act re-
curing foreign insurance corpora
tons, companies and associations
to give bonds for the security
and protection of policy holders in the
territory OF Arizona"
Section | provides that no in
nrance company organized under
the laws OF any state, territory or
foreign country shall be permitted to
transact any kind OF insurance business
within this territory until it shall first
deposit with the territorial treasurer
agood and sufficient bond with two or
more sureties in the sum OF $4,000 for
the benefit and security OF It's policy
holders in Arizona.
Section second provides that the
bond must be inform, joint and several
payable to the territory and 81 gned by
the president, secretary and treasurer
or managing agent Of such corporation,
that in case in which a supersedeas
bond on appeal has not been given by
the principal as required by law, that
the principal within thirty days after
the rendition OF judgment, pay or cause
to be paid all judgments not exceeding
$4,000 on any liability incurred by
virtue Of any of its policies.
Suit may be brought on the judgment
to recover against the bond without an
assignment in any court of competent
jurisdiction within thirty days after the
entry Of such judgment.
Under the present law, or rather alb
senCe OF law on this subject when suit
Is brought to recover by a poiicy-holder
against a company, the suit is only the
beginning o; a litigation which must be
carried into the state, territory or coun-
try in which is located the principal
office OF the company. In many states
ioreign insurance companies are re-
CURED to deposit funds with the state
treasurer to secure the policy-holders OF
those states. Although the sum thus
deposited is necessarily large one, Ot
the interest on which the company Is
deprived, the law is usually cheeriully
complied with.
NJ. Elward's measure is just as eff
cacIol and is more acceptable to insur'
anca companies in that it requires nc
actual outlay OF capital.
Arizona has the reputation among
Insurance companies OF being the east
es. locality in the Union for transaction
Of Business; the larger and more stable
companies are inclined to believe that
the territory is entirely too free and
easy, as the door is thrown open to
Mushroom aud irresponsible companies,
Hence they hail with delight the re-
strlction which is bound to reduce com
petition