The Saint Paul globe., 1897-05-18
PROOF SHEETS OF THE INTRODUCE
TORY OF THE INSURANCE
COMMISSIONER.
RELATES TO FIRE COMPANIES.
HE DISCUSSES THE MORO IMPOR.
TANT FEATURES TOLD BY
THE REPORTS.
HINT TO THOSE BUYING INSURANCE
In Concerns Not Authorized to Do
business In This State-Lack
of Funds.

Insurance Commissioner Dearth, Of
the state insurance department., has
received the proof sheets Of part first
of the twenty-siXth annual report OF
that department. There will be about
466 pages in the volume, most Of which
will be covered by statistical tables
reproducing the financial statements
of the insurance companies doing busa-
ness in the state. This is one OF the
very few of the reports which Will DE
printed this year, because the commits
sioner had the matter in the hands cI
the printer before the present law was
passed which so materially cuts down
the printing appropriation.
There are only few pages OF read
ing ma tier, and these explain the prin-
cipal points to be noted in connection
with the tables which follow. 1t ap-
pears that fifteen new stock fire 1nsur-
ance companies have been added to
the list of those doing business in this
state. This represents an increase or
$4,2 600 in the amount of capital rep
resented by such companies. There are
four new fire insurance companies other
than stock companies. Nine mutual
and Lloyds have withdrawn.
The premiums received by stock
fire insurance companies for the
last year was s3,717, ,57S.2s, the losses
$1,655, ,4SS.45 or AN per cent of the
premiums The total premiums of
stock, mutual and township companies
was 81, 199, ,046.18, losses 81, ,967, ,2357O. The
stock fire insurance companies made a
profit of about $7O0,0 in the last year,
or an earned dividend of IL per cent on
the total cash capital invested.
The insurance commissioner gives out
the news that the premium rate of fire
insurance has been materially reduced
within the last year in spite of the
valued policy law" Of 1895, although 1T
was freely predicted that the opera
ton of this law would have the effect
of raising the rate. He has good
word for the arbitratio provision of
the law, which provides that matters
In dispute shall be submitted to referees
and states that this system has proven
IuOSI SATISFACTORY IL oPPSe1A eAAe~s 49,
fire insurance company in the state Is
now in the hands of a receiver, and that
those which were In the process Of ad-
justment at the time of the last report
have closed up their affairs.
The insurance commissioner gives a
gentle reminder to those who take out
Insurance in unauthorized companies.
He defines this sort Of company as
one which has not complied with the
state insurance laws, and points out
that in case they refuse to pay a claim
the insured cannot go into a. Minnesota
court and enforce payment, but will be
compelled to bring suit in another state.
A list is given of the firms and persons
who have taken out licenses to place
insurance with unauthorized companies,
and the amount is given where it has
been reported to the commissioner.
In such case they pay per cent
tax to the state on the amount handled.
Quite a number Of firms neglect to re-
turn such statements as to the amount
of business done with unauthorized
companies, and, while the comm. .ssioner
mildly remarks that he supposes they
forgot, yet this absence Of mind does
not let them out of the tax, and he
proposes to take steps to enforce the
law and make them report the amount.
The full list Of firms and persons do
ing business with these unauthorized
companies has been printed in the
G o b G.
Mr.. Dearth remarks that the annual
appropriation Of $1,000, for the entire
expenses of his department, Is entirely
inadequate to accomplish the work ex-
pected of it. Only $3.50 is allowed for
clerk hire, and this makes it very diff
ficult to get out the financial state
ments promptly. and their value is
largely in proportion to the promptness
with which they are issued. The state
gets a revenue of $160,000 to $165, 900 a
year from the department, and Mr..
Dearth deplores the fact that the last
legislature did not see fit to give his
department an increased appropria-
ton. He does not say anything in the
report about the fact that no report
can be printed next year, owing to
the decreased appropriation in the
hands of the state printer, but in con-
versation with the G o b e reporter,
he remarked that the absence of the
report would cause a great deal OF
adverse criticism among the insurance
men to whom the matter contained in
such report is Of great value.
He is also sorry that the legislature
did not create the Office of state fire
marshal, and claims that the work Of
such an official with such assistants
would decrease the annual fire loss
from 25 per cent to fifty per cent. A
Massachusetts, report is briefly quoted
to show the good work done in that
state by the fire marshal.
The new laws and the amendments
to the insurance laws passed by the
last legislature are commented upon
at some length and that providing for
the recodification of fire insurance laws
is pronounced very goodde especially
that portion relating to township
mutual companies, of which there are
112 in the state. These companies
wrote over $20,000000 worth Of insur-
anee in 1896, and had $72,000000 in force
at the close of the year. They received
over $4,000 premiums the last year.
The commissioner takes exception to
the present law for the organization
and regulation Of mutual fire insur-
ance companies. 1t was passed in 1895.
He claims it was ambiguous and un-
satisfactory in some of It's provisions.
A firm must have $750000 worth OF
Awarded