Evening star., 1902-05-01
THE RULING MODIFIED
STATEMENT REGARDING REG
ULATIoNs OF INSURANCE.
Correctness Of Recent Decision Was
Threatened With Contest
Before the Courts.

The District Commissioners recently re-
quested statement from Mr.. Thomas E.
Drake, the superintendent of insurance,
relative to the ruling of the department on
the question of insurance solicitors licenses.
The statement has been submitted and the
Commissioners have likewise secured Sec
ond opinion from the city solicitor, Mr.. A
B. Duvall, on the subject, which materially
modifies the first ruling of the department.
The attorneys of several Of the insurance
companies have recently been before the
Commissioners presenting their views and
urging modification of the ruling, which
declared that insurance solicitors could not
engage in any other business. Mr.. brakes
statement to the Commissioners is as fol-
lows:
This department is threatened with liti-
cation to test the correctness of one Of the
rulings respecting insurance solicitors. The
question is, in substance, whether section
6o5 of the District code authorizes the
licensing Of such solicitors whose employ
ment by or business for the insurance
company Is not their principal employment
or business, but is subordinate thereto, and
who are at liberty to devote much or as
little time to the insurance business Of the
company as they may choose, receiving
compensation for what they In fact do or
on the other hand whether section 655
authorizes the licensing Of such solicitors
only whose general and principal employ
ment ana business are by and for the COM
pany.
Threatens Contest.
Under the advice Of the city solicitor,
my legal adviser, 1 adopted and have ad-
hered to the latter construction, but the
correctness Of this is seriously contested
by one of the insurance companies, which
appears determined to contest it in the
courts. At my suggestion this has been
delayed, but 1t must now be settled one
way or the other, as the annual licenses
must go into effect May /.
'The ruling depends upon what is the
proper prerogative Of the superintendent Of
insurance referred to in the last paragraph
of section 646 and section $50, commencing
with the first proviso, each of which must
be taken in the light Of the whole statute
upon these subjects.
During an interview with the city solici-
tor on this subject some time ago he ex-
pressed willingness to reconsider the case,
and 1t is at his suggestion and the request
made by you that refer, the matter to
you.
Il have the honor, therefore, to refer the
matter for your consideration, with the sug-
geStion that 1t be referred Immediately to
the city solicitor for his final determination,
which will govern my action in the prem
ises.
I'm any event the form of the ruling will
not have to be changed, but only a different
construction given to it, and of which 1t
may be susceptible although 1 am unwill-
the court of last resort"
Mr.. Duvall's Views.
Mr.. DuvalPs second opinion, upon which
a modified Interpretation of the law is now
based, follows:
There is no expressed requirement in the
law that such solicitor shall be employed
exclusively by the licensed insurance COM
pany or agent, or that the general and
Drincina1 business of Snph
ployed shall be the business Of insurance,
and although it may be desirable to thus
restrict the Solicitors license alike in the
matter of regulating the general business
of insurance and of equalizing the license
tax. am of the opinion that not at
liberty to read these restrictions into the
law.
''If 1t is demonstrated by practical ex-
perience that unjust inequality results the
law will have to be amended in respect to
the subject