Omaha daily bee., 1900-12-05
HOLES IN INSURANCE LAWS
Old-Lins and Tratsrnsl Men Are Seeking
Revision Of the Statutes
TWO NEW MEASURES NOW BEING FRAMED
Agents Desire 10 Protect Public and
Themselves from the 1ncursions
of Concerns Conceived
In Had Faith.

The old-line insurance men and num-
ber OF fraternal society officials who meet
informally in the Commercial club rooms
are now embodying their ideas on life In
surance for submission to the Legislature
They express the belief that the public Will
have cause to feel secure in benefactions
coming from friends, post-mortem, II their
revision receive attention. The agents have
not organized formally for an assault upon
the statute mill, but 1t Is their intention to
1egislate out of business TX possible num-
ber Of quest ionable institutions that have
been permitted to enter the insurance Held
In Nebraska under the existing lax laws.
The legislation committee OF the Ne
braska Fraternal congress, composed OF II.
NJ. waring OF the Ancient order OF United
workmen, J. T. Yates OF the Woodmen OF
the World and w. e. Sharp Of the Royal
Highlanders. is now at work preparing
couple OF bills for introduction at the com
ing session. These bills will go before
the lawmakers with the endorsement OF the
secret Organizations OF the state and IL Is
| reasonably certain in the framer's opinion
that they will pass.
The most important OF the two bills Ia
one amending the present statute govern
| ing fraternal insurance by providing legal
min imum rate. At the last National Fra
ternal congress q minimum rate, after being
presented by q special committee that had
given the matter careful attention, was
| adopted and recommended. This rate
ranges from 93 cents per $1,000 at the age
OF 21 to 80 2s per 81 900 at the age OF 81.
This is the minimum that may be fixed In
the proposed Nebraska law, but 1t may be
| modified.
| Chance for Illicit Concerns.
prevent a fraternal insurance concern from
starting into business with rate as low
as 10 cents per 81 ,000 and therefore. the
way for fraudulent and unstable ventures
in the fraternal insurance line is left
wide open.
The other bill being prepared by tho
committee Is what the members term their
| reciprocity measure. 1t is designed to ex-
clude from doing business In this state the
| institutions OF states that exclude Nebraska
concerns.
| John Steel. in speaking for the old line
| interests said: I'VE don't really need any
| legislation, but the public does We are
| not recognizing as competitors the several
| insurance frauds that are being operated In
| Nebraska and II is not a selfish interest
that prompts US to urge upon the legisla-
ture the necessity for adopting more
stringent insurance laws.
"The people of the state ought to be pro-
tected against fraud There is nothing in
| the Nebraska insurance laws to prevent
. company from reporting as an asset the
estimated amount Of the premiums II ex-
poets to collect during an ensuing year.
This is merely an instance Of the laxity
| OF the Nebraska statutes, which are full OF
loopholes through which fraudulent insur-
ance operations may be carried on.
| "The legislation to be asked for by the
fraternals ought to be granted, as II will
strengthen the position Of those worthy
Institutions. The old-line insurance men
have no quarrel with the fraternals-they
are educators and public benefactors,
affording the comforts Of insurance to many
worthy people who cannot AFFORD to carry
the old-line. Our grievance is against the
fraudulent concerns, Of which there are
several in operation in this state