The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1897-03-16

Insurance Commissioner Lambart's
FIRST annual report gained for him
prompt recognition as q vigllant and
vigorous official whose aim COmpre-
hended the utmost protection of policy
holders possible by law, and his subse-
quent words and deeds have confirmed
this impression. His report for the year
just ended is largely occupied with mar
ratiVes of successful attempts by the
insurance department to uproot fraud
ulent companies, and it shows that lit
tie, if anything, has been left undone.
Some queer tricks are exposed in the
report, notably that credited to the
directors of a Philadelphia company,
who in their report for 1898 saw fit to
enter among their assets a guarantee
for 500, 600 contributed by them "out of
a laudable desire to shield the policy
holders from a legal liability of as
sessment in a contingency; but some
months later it was found that $ll 900
of this had been returned. without
entry on the books, to the contributors
of the guarantee. "As the department
insisted" adds Colonel Lambert, that
this fund in each instance must be re-
garded as a free gift to all the policy
holders which could not be taken out
at the pleasure of the contributors, or
If there was any intention of returning
it, then it must be entered as liability
as well as an asset. they We're all so
held in the several annual statements,
and as that very proper method Of bal
ancing the statement did not serve the
purpose of the guarantee fund-that Of
making an imposing show of assets that
We're really not assets-interest in keep
ing up that fund was materially damp
ened." He intends to see if the law
cannot be made to put stop to such
juggling with figures.
Another device concerning which ad-
ditlonal legislation may be necessary
has been developed by Philadelphia
mutual company which takes risk on it's
own account and reinsures them in Il
New Jersey mutual which is not IL
ceEsed to do business in Pennsylvania
and could not be admitted under our
laws. 1t is evident that if this prac-
tice be tolerated, it would soon become
y
corporations Of other states to secure a
license in Pennsylvania and the COM
monwealth would lose half a million
dollars in annual revenue.
Among the recommendations urged
upon the legislature is that it fix u
standard form Of fire insurance policy,
which shall be uniform among the COM
panies doing business in the state. The
department thinks it must be apparent
that almost any form authorized by
law, even though bad in some features,
must be better than none whatever,
since, under existing conditions, there
may be inserted in a contract any pro-
vision which the insured is willing to
accept or which may escape his atten-
tion, no matter how vicious. This GER
tainly appears reasonable.
The report shows that the Pcnnsyl-
vania companies have had another
prosperous year, the premium receipts
Eor 1896 being over four hundred thous-
and dollars more than the preceding
year, while the losses We're only a little
over two hundred thousand dollars
greater Taking all the COMPANIES re-
porting To the department, the showing
is better, as the premiums received We're
nearly a million dollars more than
In 1895, while the losses were tive
millions and a half less. The ratio OF
losses to premiums received by Penn
sylveuia companies was 53.O5as against
66.i1 in 1895, and of all the companies
1929. a. against 55.76 the year before