The times. [volume] (Washington [D.C.]) 1897-1901, 1900-04-03
DISTRICT INSURANCE BILL
The Measure Regulating The Bust
ness Passed by the House.
A Provision Increasing the Tax ON
Foreign Companies ProvokcS n
Lengthy DiscussiOn-Tbe Commit
tee Amendments All Adopted
Other Legislation of Locnl Interest

The House yesterday afternoon passed
the Jenkins bill to regulate insurance IN
the District of Columbia, after discussion
lasting for more than two hours, and
which was participated in by Mr.. Jenkins,
Mr. Babcock. Mr.. Ray of New York, and
Mr. Henry of Mississippi, for the bill, and
Mr. Hepburn, Mr.. Henry of Connecticut
Mr.. Russell of Connecticut, Mr. McRae of
Arkansas and Mr.. Ridgely against it.
Mr. Hepburn's objection TO the bill Nas
general; Mr.. Henry of Connecticut and
Mr.. Russell opposed it because it an
creased the tax on foreign insurance com
paDies doing business in the District from
to 1-2 per cent on their premium le-
ceipts; Mr.. McRae's amendment to the Lii
to prevent insurance companies from COM
bining to raise or to maintain insurance
rates was adopted, and Mr.. Ridgely
thought the bill gave to insurance com
panies the benefit of too many exemptions
from liability.
1t was l2:45 o'clock when Mr. Babcock,
Chairman of the Committee on the Dis
trict of Columbia. after reminding the
House of the order made last Monday.
called I'D House bill 1888. to regulate IN
surance. This bill was introduced by Mr..
Jenkins, on March S, and on March 10 it
was reported with amendments, referred
to the House calendar, and ordered to be
printed. The clerk proceeded with the first
reading of the bill, which covers twenty
three pages, The reading occupied nearly
forty-ive minutes.
Scope of the bill.
The bill creates a department OF in
surance under the direction of the assessor,
who is ex officio superintendent of insur-
ance, who by the terms of the bill is al
lowed one insurance clerk, who shall be an
expert on insurance, and shall devote all
of his time and energies TO the insurance
business.
The report of the committee on the bill
recites:
Heretofore there has been no law gov
erning the insurance business in the Els
trict, no supervision whatever except that
said companies are required TO make per
cent returns on their gross receipts, and to
the public mind the insurance business has
been in a chaotic condition; whereas the
bill presented requires said companies to
make sworn returns of the business trans
acted in said District TO file copies of their
charters or articles of incorporation with
the superintendent OF insurance, who shall
have supervision of all matters pertaining
to insurance insurance companies, and
beneficial orders and associations. Said su-
perintendent shall see that all laws of the
United States relating TO all classes Of in
surance companies are faithfully executed.
The superintendent of insurance shall
act as attorney for companies whose prin-
cipaI office is located outside of said Dis
trict, for the purpose of having some one
designated, who is accessible, upon whom
legal process can be served.
The bill. although not intended as a
revenue bill, does increase the District
revenues somewhat. 1t provides rules and
regulations for the protection of good, re-
liable companies, and shuts out irresponsi-
bic or what are known as wildcat COM
panies, whose existence is on paper only,
and thereby Is q great source of protection
to all classes. more especially the ignorant,
who are more susceptible to being de-
frauded.'
when Speaker Henderson announced that
the question was on agreeing 10 the
amendment, Mr.. Hepburn said that as the
bill contained an appropriation, it should
properly be considered in Committee of the
Whole, and Mr. Jenkins, in charge of the
bill, to whom time had been yielded by
MIR Babcock asked unanimous consent
that the bill should be considered by the
House as in Committee OF the Whole,
which was agreed to. Mr.. Jenkins ex-
planned that the adoption in this bill of
tHt new OTh SldHQdFu pUilCg IN user
is of manifold benefit TO the insured, as
well as to the reliable insurance com
panies, by protecting poor ignorant peo-
pie who have been known to pay out money
for insurance which they believed to be
good but which would contain conditions
that would inyalidate their contract on a
mere technicality. He declared that the
pending bill, should it be enacted into law.
would remove such companies from the
community and enable the reliable COM
panies TO do the business.
He explained that the bill provides that
the superintendent of insurance shall re-
woke the license of any company failing to
comply with the terms and requirements OF
the act; that 1t provides also for small
license fee for solicitors and brokers, so as
to have them registered and under the
supervision Of the superintendent, thus
ensuring the public from being imposed
upon by INSCRIPTIONS persons as every so
licitor must show his license before he can
receive his fee or commission. MIR. Jenkins
said the bill had been scrutinized by the
insurance officers of some OF the largest
States in the Union, and that it meets with
the approval of all parties interested in the
business Of insurance in the District of Co
lumbia.
The section Taxation.
MIR. jenkins mentioned that there was
no discrimination between foreign and
local companies He would not favor per-
hitting foreign corporations to come into
the District and paying a smaller tax that
that paid by the local companies He
thought there was no danger that the for
eign companies would be driven from the
local field by the increased tax of one-half
of per cent Section of the bill provid-
ing for the payment of taxes 10 the District
Government, follows:
That every insurance company or association
doing business IN the District Of Columbia shall,
through its local agents or representatives., fur
nish 10 the superintendent during the month Of
January of each year a statement Of its bust
ness in said District. setting forth specifically
the amount Of its premium receipts, the amount
of losses paid. the amount OF expenses incurred
respecting the business done IN said District dur
ing the calendar year hast preceding, and said
superintendent shall preserve a separate record
of the in his Office for convenient refer
ence, showing the ratio OF such losses and eN-
penses, respectively, to said premium receipts;
and all insurance companies Of every description.
except mutual fire insurance companies, shall
pay TO the collector OF taxes, before March Of
each year, sum equal TO ] - per centum OF
the said premium receipts Of the last preceding
calendar year. in lieu OF all other taxes except
taxes upon real estate and any license fers !
provided for by this act and upon the failure Of
any company TO pay said taxes before March !. |
as Aforesaid, the license OF said company shall |
be revoked and a penalty OF 3 per centum per |
month shall be charged against said company, |
which, together with said taxes. shall be coll |
lcctcd b7tofe said company snail be allowed 10 |
resume business
NJ. Henry Of Connecticut criticised the |