The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-05-11
AUDITOR is STILL BUSY
SAYS HE WILL CONTINUE TO STIR VI
INSURANCE COMPANIES.
Writes n Letter to the Old Line Conn
panfes I'm Relation to
"Cut Rates"


this State has not yet subsidized and the
auditor OF state still has his eye on several
companies now transacting business in In
diana. A number Of applications of foreign
companies to do business here have been
held up" pending examination into the af-
fairs of these concerns. but there are three
companies now established in the State
which will probably be defendants in ac-
tions brought against them. One of these
companies is I'm this city and the other two
are outside. If a company secures a foot
hold, the burden of proof is on the state to
close it up. but If a certificate is refused.
the company is required 10 show reasons
why it should be permitted TO continue.
1t was reported yesterday that the off,
GERS of the Guarantee Life Insurance Com
pany, which was refused a certificate by
the auditor about two weeks ago. had left
between sunset and sunrise. The president of
the company was Fred Warren and he did
leave the city, so far as could be learned.
last Thursday night, but it is not believed
there was anything wrong in this connec-
ticn. The company decided to reinsure all
policy holders and to close up its affairs,
when suit was threatened by the auditor.
Auditor Hart said, yesterday: II under
oNaA44 Tia Il was liz AAANA WV ~
the money into this company and he bore
the greater part of the loss. I understand
they are making a sincere effort to reinsure
their policy holders in a Buffalo company.
but that information has not come to me
officially. / believe they will do so and that
the statements made by Mr.. Warren will be
carried out"
Ex-Judge Mcbride was the attorney con-
cr,1to1 hv The o1roDoNy x-hap The orr1ff0r
refused to issue his certificate, and he said.
last evening: The company had consulted
me several times on legal matters and
when Mr.. Warren found he had been de-
ceived in the writing of policies. he came to
see me abor- it. and 1 advised that the
company close up it's affairs and reinsure
the policy holders. If Mr.. Warren left here
with the company owing anything, 1 am
satisfied he will pay it in full. He has an
established business at Benton Harbor and
Is an honest man. He was imposed upon in
the company and was called on to furnish
the money for others. I am satisfied there
was nothing dishonest in his leaving and if
he left during the night 1 am sure he will
return and settle all the company indebted
ness"
Arrangements are now under way where
ny OH6 OI the companies III III CITY CA-
poets to wind up its business and reinsure
all policy holders in another company.
There is no suspicion as to weaknes of this
company or mismanagement of its affairs,
but II is simply that business has been fall
ing off to such an extent that IL is believed
this will be the best plan. Auditor Hart
yesterday expressed the opinion that the
life insurance business of the State is rap
idly centering towards three or four of the
larger companies, and that nearly all OF the
smaller companies will go out of business In
the course of time.
holders OF the Life Assurance Company of
America received Of the contemplated NOV
ing of the offices from this city TO Philadel-
phia was a circular containing the follow
ing agreement. which they were asked TO
sign:
Having received notice Of the proposed
agreement for the constellation of the MEN,
Rers of the Life Assurance Company of
America, in which / am the assured under
p9iicy number - for 8 assurance,
ance Society of Pennsylvania, hereinafter
called the Consolidated Company, / do here
by, on behalf of myself and of any person
VINO shall have or claim any interest in said
policy, ratify and accept said consolidation
agreement, and / hereby release all claim
on the Life Assurance Company or Amer
lea, in and under said policy in considera-
ton of the acceptance of the liabilities of
said the Life Assurance Company of Amer
lea by the said Consolidated Company.
hereby especially agree that the application,
medical examination, If any, and any re-
vival application made to the Life Assur-
ance Company Of America for saio policy or
TO secure the continuance thereof, shall be
binding upon me and upon any person who
shall have or claim any interest hereunder
the same as If said application, medical ex-
animation or revival application were made
TO the said Consolidated Company direct,
and L further agree that all personal agree
mentS, applications, revival applications
medical examinations and policy contracts
between myself and said the Life Assur-
ance Company of America shall be of the
same binding force and effect between my
self and said Consolidated Company as If
they had been made between myself and
the said Consolidated Company direct. i
hereby authorize the Life Assurance Com
paIsy of America to pay over all of it's as
sets, property, chattels and belongings of
any and every description to said Consoli-
dated Company"
The policy holders were asked to return
the circular to the company after signing
1t. A few of them refused TO do so, but the
majority did SO, believing it to be the best
way out of it. The signed approval was 10
be sent to No. 1il3 Chestnut street, Phil
adelchia.
Auditor Hart has written to the officers
of old-line companies asking them TO stop
cutting rates. He says while there is nc
law to cover the case, ii is a manifest in
justice to other policy holders who pay full
rates for their Insurance while another
class pay cut rates for the first year as an
inducement TO take out policies. The audi
tor has announced his determination To
cleanse the State of all insurance companies
that are not strictly legitimate. and he will
enforce the law, no matter whom it may
strike.