Eureka weekly sentinel. [volume] (Eureka, Nev.) 1887-1902, 1901-02-23
NEW LAW.
Many Companies Withdraw, while
New Ones seek Business.


passed by the Nevada Legislature last
week over the Governors veto. has had
the effect Of causing many Of the COM
panies hitherto doing business il this
State to order their agents TO refuse to
write new policies. evidently hoping
that this action will have the effect Of
forcing q modification Of its provisions.
All the companies represented in Eu-
reks by /. G. G. Whitmore have notified
him OF their determination 10 accept no
new business in this State, and in &C.
cordance with this determination he 10
instructed 10 write no new policies. All
risks taken prior to the passage OF this
Act will be continued by the companies
accepting them, bat no new policies will
be issued while this law is in force.
Strange ss 10 may seem. while the
oompspies which have heretofore been
| doing business in this State are announc-
ing their intention Of withdrawing from
the field, other corporations which have
not hitherto established agencies here,
are now sending out circulars announc-
ing that they will accept ell approved
risks that may be offered. and declare
themselves ready and willing to com
ply with the new law.
As . further evidence that Nevada
property holders will not be obliged to
carry their own risks, it may be added
that Mr.. Hardesty Of Elko county gave
notice 10 the Senate q day last week
that he would 81 an early date introduce
q bill providing for the incorporating Of
q Nevada Insurance Company.
The new law, regarding which SO
much has been said, is as follows:
SECTION l.. The holder or holders Of
. full paid-up fire insurance policy is
sued by any fire insurance company, FIRE
insurance association or other company.
corporation or association issuing FIRE in
surance policies in this State, shall be
entitled TO and shall receive in case Of
loss by fire on the property insured.
when q total loss, the full sum named in
the policy.
SIC. 2. Any person. firm, company,
or corporation or association doing a FIRE
insurance business 10 this State and issu-
ing FIRE insurance policies, refusing or
neglecting to make full payment Of losses
sustained on full paid-up policies. shall b.
deemed guilty Of q misdemeanor and
upon conviction thereof in any court OF
competent jurisdiction shall be fined in
the SUI of five hundred dollars, and IN
til such fine is paid, the person, firm.
company, corporation or association so
offending. and in default, shall be, and
is hereby denied the right to issue fire
insurance policies in this State; provid-
cd, that the provisions Of this Act shall
only apply to buildings or other struc-
lures. and not to personal property de-
stroyed by Ere therein.
In addition to this bill, which has
become . law, another measure is now
pending in the Senate, which aims to
regulate the insurance business in this
State. 1t provides that mo fire insur-
ance company or association shall re-
insure, in any name whatsoever, the
whole or any part Of Q risk taken by it
on property situated or located in this
State in any other company or %associs-
| ton not authorized to transact business
in this State"
Heretofore it is said to have been the
practice for . few insurance companies
to comply with the laws OF Nevada. and
after writing policies to divide them up
among other associations which had
evaded the requirements of the statutes.
The president or chief executive officer
Of every insurance company doing bust
ness in this State is required to file an
affidavit annually with the State Con-
troIler setting forth that the provisions
OF the insurance laws have not been
violated, and . penalty Of $500 10 pro-
vided for each failure to comply with
their requirements.