The San Francisco call., 1898-01-24
CLAIMS INSURANCE
 LAWS ARE VIOLATED
Fidelity Mutual Life Insurance Company and A. J. Clunie
 at Outs.
The Former, Clunie Says, Refuses to Obey Orders and Trouble Is
 Expected.

Several differences of varied degrees of importance exist between the Fidelity Mu- tual Life Insurance Company of Phila- delphia and Andrew J. Clunie, Insurance Commissioner of the State. In conse- quence the Fidelity Company is doing business without a license. a condition which the law does not sanction and by statutory provision states that a fine of S20 is due the State for every policy writ ten while such a condition exists. Ths latter fact, however, seems to bother the company but little, and according to Commissioner Clunie 1t is taking its time about preparing its statement to be pre- scented with its application for a new license.
 The existing misunderstanding or rather difference of opinion between the com pany and the State Commissioner came to pass last June. Under the law the Com missioner notified the company as it was an assessment company it must insert in its policy applications used by Solici- tors-which is the original document signed by an applicant for insurance-a clause stating that the policy was not limited to fixed premium, and that the policyholder might be called upon to pay any premium decided upon by the direc- tors of the company.
 George A. Rathbun. local manager of the company demurred to the order said MT. Clunie last evening, and stated that in his opinion it was sufficient that the clause directed to be inserted in the application blanks be included in the policy. Notwithstanding his opinion. informed him that the law required that the clause be inserted in the application Dlank ana that the order must be regar rd- ed A few days later I addressed a let- ter to L. G. Fouse, superintendent of the company at Philadelphia, stating that the order had been issued and reoresred hiro to see that the law was complied with and in due time l received an answer SIIatihg that the order would be regarded III the answer blank was folded con talnlng the clause provided for by law ana statement that the blank would pc used; This satisfied me that my order wouio De compiled with. and I let the matter orop. In the meantime the it. cenSe or the company expired
 4, Being informed that the order regarding tne premium clause had not been in7 serted in the application blanks [ visitad the local manager a few days apo informed him regarding the statement dDda Tor a license. license. and then asked why my not been compiled with. I presented the letter of l.. G. Fouse. and MT. Rathbnn informed me that he had received no notice from the home office that the clause was to be inserted in the applicae =
 lon blanks; immediately formed an oplnion that l had been tricked; but, power to revoke a license when inc co,nS pany holding 1t does not comply with the statutes enacted for its government" b,t as this company has no license at nresant l have not as yet decided as to what course l will pursue. An application for renewal of its license was made hv tna company some time ago, but as the r,,Ias regarding the required statement had not been made, the license was refused.
 Another difference existing bet ween nv Selt and the company is regarding what IS known as the retaliatcry law The statute or law provides that when an other State imposes an increased tax or license on companies existing under tha laws or this State all companies existip y under the laws of other States and doinS business in California shall he taxed iS excess of the regular license figure to tha same extent that California comma nies are taxed in the States where the foreien companies have their headuuarters AZ cordlng to the laws of Pennsylvania aII foreign mpanieS-meaning comnanies having headquarters in other States~are taxed S25 in excess of the regular license This being the fact. the law of this State imposes a tax of S25 year on the FidaIo ity Company. This law has been over looked by my predecessors, and in conse- quence, the company has not been corn pelled to pay this tax for something like seven years. In consequence I pronose to tax the company for the lull amount due. and see that in future the law is compiled with. The insurance laws have been disregarded in this State for some time, and an effort will be made to see that the will of the Legislature predoni- mates over the pecuniary interests of foreign insurance companies