The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-03-16
IT IS NOT DICTATED
INSURANCE COMMISSIONER DEARTH
SAYS THAT THE ASSESSMENT
COMPANY BILL
is NOT AN "OLD LINE" GAME,
BUT RATHER TO THE INTEREST
OF THE BETTER ASSESSMENT
COMPANIES.
TT WOULD MAKE THEM STABLE
He Says, and Secure to Their Policy
Holders the Safety That They
Seek.

Insurance Commissioner Dearth, yes
terday said in reply to the communica-
tions of Insurance on the assess
ment insurance bill, which have been
appearing in the Dispatch:
It is boldly asserted that the bill
which has been introduced in the pres
ent legislature, providing for the gov
eminent and regulation of cooperative
or assessment insurance associations,
operating in Minnesota, or such as
may be organized hereafter. or admitted
from other states for the transaction
OF their business herein, is only sup
ported or favored by the so-caIled old
line millionaire life insurance COM
panies of the East. That the passage
OF such bill means the annihiation
or all home institutions now operating
under the present laws governing this
class of associations or societies.
The old line companies, so-called, re-
ferred to by this anonymous writer
have in no way dictated or advised the
drawing of the bill On the contrary,
to anyone familiar with the circum-
stances it is plain to be seen that the
aforesaid old line millionaire companies
would be much more deeply interested
in having the present laws relating to
assessment companies remain intact, as
1t gives them the strongest kind of
an argument to use in meeting compe-
t1t1on from this class of companies in
the solicitation of business. AS the
laws now stand, and have so stood
for the last ten or twelve years, no
provision is made whatever as to any
financial strength that shall be required
Of companies organized or operating
hereunder.
To illustrate: All that is required of
any party or parties desiring to organ
ize a cooperative assessment or acct
dent company. under the present exist
ing laws, is to simply draw up articles
of Incorporation, which must be signed
by nine persons, residents of the state,
two OF which incorporates shall sim
ply file an affidavit with the insurance
commissioner at the time the articles
are presented for filing, setting forth
the fact that not less than fifty per-
sons have made application in writing
FOR policies, in said proposed association
or society, as the case may be- Such
1ncorporators have to pay a fee to the
state of ten dollars for filing the arti-
cles, and in addition, one dollar for
the certificate issued to them by the
insurance commissioner This is the
total amount of capital actually reouir-
ed for the organization of such an as
ISOLATION, and it is seen that this
amount is simply paid to the state.
There is no provision in the law re-
curing such company to pay claims
that may accrue against the same I'M
der it's policy contracts, or any part
Of them. This Is left entirely to the
discretion of the managers of such an
association. No financial responsible
ity of any kind or nature is required I'M
der these laws. At the same time. the
insurance commissioner is absolutely
obliged to issue certificate of author
ity upon the filing of such articles.
This document is represented to be,
by many of such associations, as an
Endorsement by the state, and on the
strength of that, many people are
doubtless led to believe that they are
connecting themselves with an insti-
tuition whose financial standing is I'M
questioned and absolutely safe, when
in reality this certificate of authority
means nothing as far as any financial
responsibility on the part Of the corpo-
ration, to whom the same is issued, is
concerned.
Insurance" states that nine-tenths
Of those who patroniZe assessment in
surance are merchants, bankers, COM
mercial and professional men. The
statement may prove true as regards
the leading, and what are looked upon
to be reliable associations of this class,
none of which under the provisions of
the proposed law would be in any way
Inconvenience or embarrassed.
All assessment associations OF socf-
cites which the able to pay their losses
promptly, are cordial supporters Of this
bill I would not on any consideration
favor bill that would work an inius
tice or hardship upon any assessment
association or society that was in a
condition to pay its legitimate and
honest obligations as they may become
due.
Insurance" also intimates that the