The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1898-12-26
STRICTER WATCH ON
INSURANCE METHODS

ploNee OF the department against sew
Cral of the brokers or agents VINO hhu
violated the law, which resulted IN CON
NiCtions As consequence OF these
convictions an unusually large num-
her W agents made applications for
brokers licenses and paid their feos,
while several foreign insurance com
panicS which had heretofore eNadeu
the laws W the state and avoided the
l,aymcnt of taxes. promptly made ap-
plication and came into the state 10
do business legitmately.
FOREIGN swINDLERS.
Another result Of this supervision has
been the large falling off of the Dusl-
ness done by worthless companies from
other states. when an agent is brought
face to face with the fact that II ire
would reveal that policies had Deen
written in illegal companies, and the
department was relentless to punlsh'
il requires very tempting inducements
on the part of such companies to pro-
cure an agent to place policies with
them. This itself is an immense ad-
vantage to the inSuring public in pro-
lection against frauds. The insured, IN
nine times out of ten, takes the WORD
of an agent as to the standing or an
insuring company. and where the agent
Is dishonest the insured finds himselt
after a fire without property or indem-
nifty.
incidentally this has also resulted in
IN increase in the revenues OF the
state by bringing in taxes on excess
lines of insurance as provided Tor uh-
der the Act of April 26. 1887. The num-
her Of applications for excess insurance
was annually less than dozen, put
since the developments of the Pitts
burg fire this number has largely IN
creased, as the brokers viii not take
the risk of placing excess lines in un-
licensed companies without the prop
crty owners making due application
for such excess, and paying the 8 per
cent tax upon the premium as pro-
Nided by law.
ENFORCING THE LAW.
Even licensed companies from other
states were not averse to doing busi-
ness in way to avoid the payment OF
their proper fees and taxes in this
state This fact had been known to
the department. but the remedy was
not so apparent. Finally, at the in
stgatiOn of the department, an agent
residing in New Jersey, was arrested
in Northampton county. Pennsylvania
for doing business in Pennsylvania
without a license. Ihe companies for
which he did business were all prom
inent. all licensed TO do business in this
state. but in no case returning any
premiums on the policies written by
this agent. The result of this arrest
was that over uozen leading com
panes each promptly sent in a list of
twelve or more agents who resided
outside of the borders of the state,
and who did most of their business in
Pennsylvania. These applications for
agents licenses We're promptly fol-
lowed by supplementary reports of
premiums which the companies naive
ly announced had been overlooked for
One pOmnnnN. after
ter making d report of several hundred
dollars of premiums received at the
New Jersey agency, subsequently made
a report of over seven thousand dol
lars premiums received through New
York agent. which agent was arrested
in PENNSYLVANIA some time after the
arrest of the New Jersey man, ano
for the same reason. These arrests
and the fact that the department has
the companies under strict surveillance
has resulted in neat increase in taxes
received. which will be more NANTES
in the future. 1t is also severe blow
to outside agents who have been writ
ing business in the state without pay
ing fees or reporting premiums TO
taxation In one case recently, wher'
a policy had been written on a Penn
sylvania property by New York firm
of brokers' the attention of the insur
ing company was called to the fac
lndt Sdlu agents ldt llbl Dttu 'tIllllt'
here. when the company promptly dis
avowed it rather than face the pen
alties.
EXPOSING FRAUDS.
There are number of alleged brok
ers in New York and Chicago who ar
constantly flooding this state with lon
lists of companies and offering dOubl
commissions to agents for any busl
ness. Not one in hundred of thes
hi "a II
agents or managers of them have II
intention whatever of paying losses
some months ago the question wa
asked Of the department as to tn
standing of the Atlas Fire lnsuranc
company, of Columbia, :. c., and tn
Interior Fire Insurance company, ,
West Virginia. both fraudulent. Til
led to the arrest of the Pennsylvani
agent who had placed the pOlicie
when it was found that the companit
were part of number repreSente
by Frank w. Anthony, of Brooklyn
y. Y. This man had been notorior
violater of the law, and as it SCENE
almost impossible to get him into II
clutches of the Pennsylvania court
an appeal was made to the postotfiC
department of the United States
punish him for fraudulent use of II
mails This resulted in the arrest
Anthony, his indictment by grand jur
and his being held for trial under SIC
000 bail.
The department also discovered thi
several life insurance companies dOr
business in the state We're really n
what they claimed to be, but we
liable to taxation, the result being TIL
several thousand dollars of back tax
were collected, and taxes on their pr
miums will be collected in the futuI
Another source of revenue has bee
found i'm giving vitality to an act n
previously enforced, requiring agen
of assessment life companies to ha'
certificates of authority.
A number of mutual fire insuran
companies which claim the right
issue cash policies under their charte
have been compelled to pay the fe
required by law to the state, and the
cases reported to the auditor geneT
for settlement of taxes on their gro
premiums in accordance with the d
cision of the Supreme court i'm the ca
If the Commonwealth VS.. Lycomi
Valley Mutual Fire Insurance COZ
pany.
4 ROAST ON LACKAWANNA
During the year number of col
plants have reached the departme
i'm regard to unpaid claims by the
Wayne Mutual Life association, Of
dianapolis, Indiana. This compa
has never been licensed 10 do busnC
by this department, has no author
to operate in Pennsylvania, and fr,
all reports il is a company organic
to do business under the plan of WI
is known as the graveyard" poll
In some of its classes il does not insl
parties under sixty years Of age.
the coal regions of Pennsylvania
done "A Npl'V largo business