The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1898-12-26

bring the partleS uOlnB tniS DuslHtss
to Justice. The plan Is very alluring
TO many people, who think that by
the payment of q small sum, they viii
receive a large one from the company,
but in every instance they hnd them
selves cheated after the manner OF
persons who go to buy counterfeit
money of sharpers. The shrewd word,
ing Of the policy of the company would
deprive the parties of their expected
return even if they could get stand
ing I'm the courts.
LEGISLATION NEEDED.
The whole fabric of insurance legis-
lation greatly needs revision. Much OF
the existing law is in conflict with
Itself, and in some particulars with
legislation under other titles, as in the
matter of licenses, for illustration. The
Act of 1873, creating the in trance de-
partment. makes it unlawful for any
city, county or municipality to impose
or collect any license fees or tax from
insurance companies or their agents
authorized to transact business under
that Act The Act of 1889, for the gov
Crnment of cities of the third class
authorizes such cities to collect Ii
ccnse fee from insurance agents, and
in some of said cities such fee is cX-
acted The confusion which such a
condition of the laws must necessarily
create could not, of course, have been
intended by the legislative authority.
The Act of 1870. to prohibit the issue
of unauthorized poiiCies of insurance.
! the conStitutionality of which Act has
! been declared by the Supreme court,
should be extended to include life, acci-
| dent, credit indemnity, marine and in
! land insurance. The Act of 1870 has
! had the wholesome effect of protecting
! the state from the irresponsible Lloyds
! Fire Insurance associations, and the
! He fsAfr 10 d
ed in the matter of every other kind of
! insurance
| ASSESSMENT COMPANIES.
The present statutes relating to the
organization and conduct of assess
ment life, and accident companies are
entirely Inadequate to the existing re-
| quirements. The character of the as
sessment business has wholly changed
| in recent years. 1t is no longer re-
garded as practicable to conduct an
assessment company on the basis con-
templated by our laws, that of making
| assessments upon surviving members
to pay death losses. 1t has become
the practice of all these companies, so
| far as my experience goes, to accept
| q level premium, and in most instances
it is a premium so small as not TO be
a safe amount. even If a proper pro-
| portion of it were carried as n re-
| serve, lO DIOltCl lnc llldlullHS ODlSd
tions of the company. AS a matter of
fact our present laws not only do not
require reserve. but distinctly say
distinctly say that a reserve is not
necessary. The assumed security of
these companies is in their power to
| make assessments, and although it Is
ordinarily represented to the insured
at the time his risk is solicited that
no assessments will be made. it is in
evitable under the low rate of pre-
MUM usually taken that sooner or lat
er there must be assessments, and that
means in the case of a large percent
age of the policy holders inability tC
pay an amount in addition to that al
ready collected by the company, and
the loss of their insurance. As the
policies of these companies have NJ
fixed value. the loss is a total one wher
the member drops out. If these com
panies are to be permitted to accept
a level premium, it seems to me that
it will be necessary to require them Il
! keep a reserve. and that the laws shall
give the supervising authority of tht
state the power to insist that a pre-
MUM shall be taken which will be suf
ficient to meet the future requirements
! o the company; also that their 1Ol
, icies be valued on the same basis a
those of legal reserve companies.
; CONCERNING MUTUALS.
, The law relating to the organiza tiol
$ and conduct of mutual fire insuranc
I companies also needs radical revision
' These companies have had a prett.
thorough overhauling and Sitting il
= the last two or three years by the de
+ partment. and the danger to the in
2 sured public in the speculative and ir
- responsible mutualS is not what it wa
\ several years ago. These COmpanie
= ought not 20 be permitted to operat
I outside of the state where it is diff
i ficult, and in many instances impos
e. sible to collect assessments from thei
= members. 1t would indeed. as ha
been recommended in recent repOr
of this department, be wisdom to con
fine their operations within limite
= territory. 1t was obviously the inten
o. tion of the law authorizing the organ
. ization of these companies that the
' should provide merely for neighborhoo
4. insurance, not intended to operate owe
=. an extended territory, and not intend
a ed as means of making money for
: few officers.
. These are some of the most aggrd
% waited defects of the present laws, bu
~ it required but little experience
10 convince any one of the necessity {
,f a revision throughout. Such reVisiO
;s cannot be made by a commission con
:, posed of those who are ignorant [
c the technicalities of Insurance. Whetht
,s they be members of the legislatuI
ri or not. A competent revision coul
~ be made only by a commission con
- posed of those entirely familiar wit
n the subject, who ought to repres saI
~ the various systems of insurance, an
9 the attorney general of the comm II
90 wealth and the insurance commissiOI
tn err obviously should be members Of sue
"a ! commission. | am confident if the les
Of islature would take action intelligent
" in this direction, that a system
- insurance legislation would result tn,
- would assure far greater protection
,t the people. making it less difficult f,
1g the department to eradicate fraud, N
nf be less annoying to the reputable co
W. pOratiOns, which the commonwealr
~ can have no desire to hamper.