The Topeka state journal., 1900-12-08
CHURCH WILL ACT
Suggests That Mutual Live
Stock Insurance Laws
Be Repealed by the Forthcoming
Legislature.
PLAN IMPRACTICABLE.
Superintendent of Insurance
Thinks Reform Also Needed
In the Present System of Mutual
Hail Insurance.
M NhzwoH TrhSv11rc D01sowy II IoTI
Ian IMPRACTICABLE.
Mr.. Church Thinks Policy Hold
ers Deserve Protection.

w. v. Church, superintendent of in
surance, will ask the forthcoming leg
islature to repeal the law providing for
the organization of mutual live stock
insurance companies.
Mr. Church will also ask that the law
providing for the organization of mu-
tuaI hail companies be repealed, or so
amended that the insured will be given
protection against loss of insurance be-
cause of the inability of the company to
pay it's claims.
The department has experienced great
difficulty with the live stock companies.
The law providing for their organiza-
ton was passed several years ago. 1t
specifies that no more than 81. 600 in
surance shall be issued to one individual.
The insurance runs on stock against
fire, lightning, tornadoes, cyclones, wind
storms, and all casualties and disease.
Any number Of individuals may secure
a charter and authority to do business,
after first obtaining applications for in
surance amounting to $4,000.
The premiums are collected by an as
seSSment equal to one and one-half per
cent. of the value of the animal in
sured- Any surplus in excess of the
amount necessary to pay losses, accord
ing to the statute, may be invested in
mortgages or bonds or real estate val
ued at so per cent. more than the amount
of the loan or bond. There is no record
of a surplus, but many complain that
settlements can not be obtained.
of men in connection with these asso-
Citations. that they are the subjects of
constant and frequent fraud Dis
eased cattle are insured and efforts
made to collect losses. There is no ex-
animation of a risk and everything goes.
Spawned and crippled horses have been
insured. Worthless and CASTOR cattle
have been purchased by stockholders of
these companies through insurance pol
icies. Fraud has been very general in
connection with this class Of business,
and complaints against companies are
more numerous in the department corre-
spondence than the complaints against
all other classes of business combined
excepting the mutual hail insurance
companies.
MY experience in the department"
said Mr.. Church, discussing his proposed
recommendations, indicates to me.
beyond any question, that the mutual
live stock insurance association idea is
by no means practicable.
Every mail, almost, brings COM
plants against this one or that one.
Various reasons are alleged as the basis
of the complaint, but there seems to be
no deviation from the general opinion
of those who complain that the plan un-
der which these companies operate Is
not what it should be shall recon-
mend that the law providing for their
organization be repealed
''F'irSt-BecauSe there are so many
frauds committed in connection with
them. and the further fact that there
seems to be a general disposition on the
part of those seeking insurance in such
organizations to take advantage of the
while in some instances the
conditions are reversed.
'second-Owing to the great trouble
which is constantly arising in connec-
tiOn with the management, and the fire.
uuent failure to pay losses, due no doubt
to lack of money, but this should be
remedied or the business abandoned
'sThird-The organizations have no
capital stock and no guarantee fund
Mr.. Church also says that the same
criticisms may be directed against the
mutual hail companies
1.-The law permitting the organization
of these companies should be either re-
pealed or amended in important par
ticulars.
These mutual hail companies have no
capital stock and no guarantee fund
The law should be wiped of the statute
book or amended so the officers Of hail
companies would be required to put up
q. bond for the faithful discharge OF
their duties.
''They should also be required to put
up a good and sufficient bond for the
protection of the policy holders. I think
these hail companies should be COM
PEELED to deposit with the state treas
urer 10 or Is per cent of their pre-
MUM receipts, to be turned to the credit
of the guarantee fund also.
81 do not believe this could be ac-