Birmingham age-herald., 1894-11-29
INSuRANCE LAWS.

INSO RANGE IA WS.
 Both the Alabama and Georgia Legisla- lures are discussing bills changing insur- ance laws. The laws of the different States governing insurance companies are ID many instances conflicting, and consist ot the original euactments, with various and sundry amendments thereto passed by the Legislature at different periods.
 Following is brief synopsis of the pres ent laws in Alabama governing fire insur- ance:
 Copy Of charter must be filed with the Auditor and verified statement of the condition of the company; every company must possess at least $100, 900 actual cash capital foreign companies must have csr- tificate of officer of same State that he holds on deposit in trust for the benefit of all pol icy holders securities worth S200, 0,000; an nual statements must be made of the con- dition of the company; State Auditor is authorized to make examination of companies, and when he finds their cap ital impaired to an amount equal to 20 per cent, after providing for all liabilities re- uuired, to revoke its certificate ;the company must pay an annual fee to the Treasurer of $1O0, and also S100 privilege tax; agents are required to pay to the Fire Department As- sociation of Mobile the sum of S200 an- nually, and in some other incorporated cities or towns where there are fire compa- nies a tax of $200 must be paid for the ben- eft of such companies; agents must hle with the assessor of the county in which they do business a statement showing the gross amount of premiums received during the preceding tax year, together with statement of expenditures, losses paid and return premiums, and a tax of per cent is levied upon tue net premiums, for which the agent is held responsble; agents doing business for unauthorized companies are liable to maximum fine of 5000 or im- prison ment, the meximum term being six months no deposit Is required, the only requirement. being a license and privilege tax; and in addition to this State license, the different cities require license, so that in Birmingham and other cities large agencies must pay out about 5000 before they can do business.
 The Legislature will attempt to amend the foregoing laws. Already several bills making amendments have been introduced. One bill has been offered requiring surety companies to make deposit of S25 ,000, and further requires them to give in writing on demand to any one statement of all the information received by them, giving the names and residences of their informants, which has induced them to decline to carry further the bond of any employe of any g firm or corporation, or issue bond to any applicant. The penalty of failing to give this in information to he for the first offense not less than 5000 nor more than S20OO and Imprisonment for three months, and for each subsequent offense not less than S2000 fine and lmprisonmentfo for six months, in addition to all damages caused by such refusal; and any citizen who accepts the bond of corporation that has not com piled with the requirements shall forfeit $1CC0, to be sued for in any court of con- potent jurisdiction.
 Another innovation has been offered Mutual insurance companies propose that subscribers issue policies to each other guaranteeing payment of losses, the se- curity for which shall be lien on all the property insured. This applies only to property in the country. The losses have been so great on barns, gins and country residences that many companies have with drawn altogether from writing such in- surance.
 The Georgia law requires that companies must deposit with the Treasurer S25 ,000 be- fore receiving license to do business. The Legislature is discussing the repeal of this requirement, and opinion is divided as to what effect it would have. It is argued that its repeal would throw down the barriers and allow wildcat companies to enter the field. These irresponsible companies would offer low rates and thus entrap citizens to their loss. On the other hand, it is urged that the repeal of this deposit law will give the people cheaper insurance and will not add to the risk.
 The Georgia law also requires insurance companies to publish in some newspaper in the town in which they do business semi annual statements showing the condition of the company. This is wise law and we commend it to the consideration of the Alabama Legislature, not as benefit to the newspapers, but for the protection of citi-