The Washington times., 1902-05-02
superintendent Drake Re-
verses His Decision Re-
garding Solicitors.
LITIGATION WAS THREATENED
superintendent of Insurance Replies to
Request of District Commissioners
Request Based on Opinion Rendered by
City Solicitor Duvall.

Mr.. Thomas E. Drake, Superintendent
Oh insurance, yesterday wrote to the Dis
'rict Commissioners in reply to their re-
quest for a statement relative to the rul-
ing oil the department upon the question
oil Issuing solicitors licenses
II appears that the attorneys of one or
more insurance companies have made
representations to the Commissioners
relative to the matter. with a view TO Sc
curing reversal of the former ruling of
the superintendent of Insurance, based
upon an opinion rendered by the City So
hcitor This was the motive for opening
'he case. and the result is modification
Oh the former ruling. which amounts to
reversal. Mr.. Drake writes:
Litigation Was Threatened.
This department is threatened with
litigation to test the correctness of one
OF the rulings respecting insurance solicit
tors. The question is. in substance.
whether section 655 of the District code
authorizes the licensing of such solicitors
whose employment by and business for
the insurance company is not their prin-
cipal employment or business, but is
subordinate thereto, and who are at lib
erty to devote as much or as little time
10 the insurance business of the company
as they may choose, receiving compensa-
ton for what they. in fact, do. or on the
other hand. whether section 655 author
ICES the licensing of such solicitors only
whose general and principal employment
and business are by and for the company.
Acted Under Legal Advice.
Under the advice of the City Solicitor,
my legal adviser. 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 il in the
courts. At my suggestion this has been
delayed, but 1t must now be settled ono
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 par
agreph OF section GAG and section 655.
commencing with the first proviso, each of
which must be taken in the light of the
whole statute upon these subjects.
During an interviw with the City So
liciter on this subject some time ago he
expressed a willingness TO reconsider the
case, and il is at his suggestion and the
request made by you that I refer the
matter to you.
Awaits City Solicitor.
Il have the honor, therefore, to refer
the matter for your consideration with
the suggestion that II be referred i'm
inediately 10 the City Solicitor for his
final determination which will govern my
action in the premises.
In any event the form of the ruling will
not have TO be changed. but only a differ
ant construction given to IT and OF which
ii may be susceptible, although ! am I'M
willing to concede IL before IL is deter
mined by the court OF last resort"
Mr.. A. B. Duvall. the City Solicitor, yes
terday submitted his opinion in the mat
ter, which in part is:
There is no expressed requirement in
the law that such solicitor shall be en-
ployed exclusively by the licensed insur-
ance company or agent. or that the gen.
eral and principal business OF such per-
son SO employed shall be the business of
insurance. and although IT may be desir-
able TO thus restrict the solicitors IL
cense' alike In the matter of regulating
the general business of insurance and of
equalizing the license tax, / am of the
opinion that we are not at liberty to read
these restrictions into the law.
''1f IL is demonstrated by practical ex-
perience that unjust inequality results
the law will have to be amended in re-
spect to the subject"