Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-12-28
THE INSURANCE BILL
Some of the Features of the Proposed Ac.
Criticised.
A Claim Tint 1t Will Freeze Out the
Smaller Brokers by Raising
the License Fee.

To the Editor of The Evening Star:
A few days ago The Star published a
synopsis of an insurance law to be sub
mitted to Congress. AS the full text of the
proposed bill has not yet been given to the
public it is, of course, impossible to criti-
else it as a whole, but there Is enough in
formation conveyed in The Stars account
to call forth condemnation as regards its
scope.
l think there are but few who do not be-
lieve that there should be some law by
which all insurance companies doing BUSH
ness in the District should prove their re-
sponsibility before being permitted TO write
insurance here. Such a law is needed, but
In carrying out its provisions no such force
of high-salaried officials would be necessary
as the bill under consideration calls for.
The assessor is the proper one to see the
law enforced, and should be allowed an ex-
ira clerk or two to attend to the details.
Now for the Objectionable features of the
bill: First, why should brokers be charged
a license fee of 500? Brokers now do bust
ness under a general real estate and iEsur-
ance license for which they pay $50 per an
mum. There is no other plausible reason
why they should be charged an extra Ii
cense fee than the desire of the larger
firms to freeze out the smaller brokers, who
are just as honest as they are, but whose
business will not justify this extra burden.
l have been told that there are too many
insurance brokers and this law will reduce
the number and place the business in the
hands of a few. Just SO, but there are also
too many doctors, lawyers, and, in fact,
every profession is overcrowded, but who
dares to propose a law to exterminate the
weaker ones in favor Of the more pros
porous?
This license fee is not to be levied to in
crease the revenue of the District, for the
bill states that is 10 be used to pay the
Unnecessary expenses of enforcing the
law. 1t Is perfectly proper to charge IL
cense fee to all companies doing business
here, and the revenue derived from them
would more than pay the economical adj
n1inistratfon Of the law. This bill states in
emphatic language that the purpose Of this
$100 fee Is to drive out of the business all
! irresponsible companies and brokers. As
regards the former this is all right, but
take exception to the law as to this dec,
laration against brokers. II the companies
are vouched for by the District as pro-
posed, then wherein lies the opportunity for
dishonesty on the part of so-cailed TIRE
sponsible broker? Under the law he could
clients in responsible companiss therefore
his own morals or financial standing would
, not enter into the matter. Another In
iQuitous feature OF this proposed law. Is the
clause relating to examinations, rebafes
etc. 1t recites that these shall 3nly be al
lowed to licensed brokers Under penalty OF
heavy fine. In other words the real es-l
tate broker whose Insurance business does
n6& justify the expenditure of $3.50 for q
special glioense cannot even fnrn his ex-
pirationa over to q more fortunate iroker
t1nd ,defiye any 8enezEt thorezfum; cossse-
quentiy he b frossnsoUt to the sattsfaction