The age-herald., 1898-02-13
.ALABAMES s INSURANCE LAWS Afford Excellent Protection to
 Policy Holders. SOME LEADING FEATURES The Premiums Annually Amount to Millions of Dollars Birmingham Fast Becoming
 an Insurance Centre.

The premiums collected from policy hold CTS of insurance companies in the state of Alabama amounts to several million dollars per annum. These premiums are growing in volume. yet the number of policy hold CTS who read and understand their policy cDastracts will hardly average one in a hun drHd in Ithe many branches of insurance and 1t would be safe to say that even a larger percentage of the poaicy holders have never read the splendid laws enacted by the Alabama legislature at it's hast ses- sion, regulating the business of insurance in this state
 These very important laws are of material interest to the business men of the state and were ffuaf oed from the best laws upon the statntes books of other states that have based Their insurance laws upon business principles.
 Section 1 of the insurance laws defines an insurance tcmpany as follows: ''The term company, insurance company, as used in this act, includes all corporations, partnerships or individuals engaged drectly Or indirectly as principals in any business of insurance etc.," which means that the Lloyds and such other aggregatioaas must slDcw that they have authority to issue policies and sufficient money with which to pay losses, before they can do business Tn Alabama. InlS section also ue1in6S Ihe insurance terms, ars used in the financial nelports of companies, which are tr4a1e clear to the reader.
 Sec. sets forth the meaning of an in eurarrce policy. It says: "A contract of insurance is an agreemeht expressed or implied by which one party for a consdd- euation. promises ito pay money, or it's equivalent, do or do some act of value, to the assured Upon the destruction or in jury of something in which the other party has am fnslrable interest" Such policy contract is, of course, governed by condl- tions and agreements expressed in the ap- plication for insurance on the policy it. self.
 Ss,. makes ahe secretary of state the ex-ofico insurance commissioner and for tunate it is for the state that the honor should faM upon so capable a man as Hon. J. Kirk Jackson, the present lncumpent, who, under this section, is allowed nepu- ty insurance commissioner which office IS ably and most satisfactorily filled at pres ent by E. Pettus Roberts who has many years of valuable experience as an fnsur- ance underwater,
 Sec. of the law requires the insurance commissioner to satisfy himself that com- panies under the meaning of this act have authority under thedr charter to write poQi- cies of insurance, also to examine Soate companies every two years or otteneT, II he thinks 1t necessary and 1T they are iDot solvent and reliable he may revoke uhelr license, lndS WILL SuOp 'uHe Hiucuii Ooiii OOAAa panies that constantly spring up in state when such a protecting law does not exist. This section also gives hfm the au- thority to examine the financial standing of all other companes not state organaza- tions. and to revoke their license should lev refuse flo permit full examination or should they be found irresponsible after examination. The expense incurred must be borne by the companies examined.
 Prior to the passage of this act the state
 ~1ta11l aTAfQT md q that took thousands of dollars annually from policy holders in the way of preuni- ,lnss and gave nothing back when losses were incurred. Now a business man may feed secure about his protection by snnply ascertaining from the insurance depart ment whether or not tthe company writing his policy is licensed to do business Ill Alabama.
 See 5. Requires the insurance commits sioner to revoke or suspend the 1urther transaction of business in Alabama or any company failing to pay judgment rem dered against it, or if the company Is found-after examination, as required py Sec 4-to be insolvent, or is in any way exceeding it's authority allowed by US charter
 Sec G. Allows home state companies sixty days to make good an impairment Of capital below 20 per cent, and upon faii- ure to do so directs the insurance com missioner to institute proceedings against it. in accordance with the preceding sec ton, Another safeguard to the insurer
 Sec T. Provides that no state life insur- ance company whose liabilities exceed Its assets. or whose capital is impaired 20 per cent, shall continue business until the same Is made good. No doubt had thls statute been on the books years ago many thousands of dollars would have been saved the unsuspecting policy-holders or state life insurance companies.
 The bill of Senator Platt, of Connectf- cut, now pending in the United States senate, seeking to transfer insurance from state to federal control, is thought to De unconstitutional by an insurance attorney, Samuel B. Paul, Esq, of New York, Tor the reason that insurance Is not "com- merce" under the constitution. and that cannot make it so, and thus bring it within the constitutional power of con- gress "to regulate commerce with foreign nations and among the several states He says: Fortunately every principle in- volved has been fully considered and clear ly fixed by the supreme court of the United States ESQ clearly that no room remains for 8oubt or debate'-and proves his opin- Ion by citation of cases.
 There is considerable agitation among fire insurance agents over the prospective removal of the lthree-quarter value clause and substituting in lieu thereof the ID per cent or 80 per cent insurance clause. Some want 1t done, while others kick like fury about even suggesting 1t.