Evening star., 1902-01-27
LICENSES
CITY SOLICITORS REPLY TO SUPER
INTENDExT DRAKE.
Duties Of Agents and Solicitors ms to
Payment of General and
Specinc Fees.

A. B. Duvail the city solicitor, has sub
mitted an opinion to the District Commis-
sioners on certain legal questions growing
out of the Interpretation of the provisions
of the new code relating TO insurance COM
panies. The opinion OF the solicitor was
requested by Mr.. Thomas Z. Drake. the
District superintendent of Insurance, and
the questions submitted were as follows:
IL Are domestic insurance companies
meaning those chartered under the laws OF
the District-exempt from paying license
fees other than the single fee OF $40 speci-
fed in section cas-? Are foreign insurance
companies entitled to the same privileges.
or must they be represented by local
agent to whom a general insurance license
has been issued? C2) Does the fee SO. pre-
scribed for fling qualifying documents
cover the fee for issuing license to the
company? (3) Must domestic insurance
compa nies have licensed representatives or
agents, the same as foreign insurance COM
panies. before they can receive business
from other domestic companies or foreign
companies or their representatives? IL SO,
what must be the fee for such license and
to whom shall such license privilege be
limited In case there is no assistant secre-
tary n the charge for such license is made
under section G54? t4) Must solicitors be
limited to one company or can they by
payment of IS In each case represent an
unlimited number of companies?
The Solicitors Answer.
Subchapter five OF the code is devoted to
the subject of insurance companies. By it's
first section a department of insurance rs
established. The superintendent OF insur-
ance has among his duties to see that all
laws of the United States relating to in
surance companies, benefit orders and as
sociations doing business In the District
are faithfully executed. The several sec
tons of said subchapter define and declare
in detail the duties of the superintendent
of insurance as well as the duties OF the
companies and all persons In any way en-
gagged in the business of enecting OF piac-
ing insurance In the District.
sThe aforementioned questions. says
Mr.. Duvall, 1T will be observed, relate
principally to the subject of licenses and
license fees. Responding TO these ques-
tions I am OF the opinion:
81 That all insurance companies. foreign
and local are required to pay the license
fee of $40 mentioned in section 646 Of the
code: the license issued by the superin-
tendent upon compliance with the condt-
tions of said section only authorizes the
companies to issue their own policies.
IAN Insurance companies OF every de-
scription, except mutual fire Insurance COM
panies, however, are required under sec
ton $50 TO pay the collector of taxes before
March ] of each year a sum equal to one
and one-half percentum of their premium
receipts of the last preceding calendar year.
Each insurance company, foreign or local,
L receiving business llrouSll Any OAAcI Cum
pany, or through agents or representatives
of any other company, rs required TO pro-
| cure a general insurance license under
section 654.
own policy in the District of Columbia is
not required to be represented by a local
agent TO whom a general insurance license
has been granted.
80. That the fee prescribed in section 646
for filing qualifying documents covers the
fee for issuing the license to each COM
pany.
IS, That each insurance company. wheth-
er foreign or local, in order to receive busi-
ness from any other company, or the rep
reseutative of any other company, is re-
quired by section 654 to first obtain a gen.
eral insurance license and pay the fee OF
so prescribed therefor Said section pro-
vides:
Extent of Licenses.
I" That licenses to firms, corporations or
associations shall be held to extend only
to the bona fide copartners, not exceeding
two in one firm, and to the secretary and
one assistant secretary of each corpora
tion association so licensed. any one or
whom may be held and dealt with on be-
half of such firm, corporation or associa-
tion for any violation of the provisions
hereof:
"In the event that such licensed corpora
ton or association has no assistant secre-
tary,' the privilege weuld be limited to the
secretary alone.
"a The license as insurance solicitor
under section 855 is to be limited to one
company: a solicitor may not by the pay
ment of the license fee of s. in each case
represent an unlimited number OF COM
panies, he may represent one company only,
section 655 provides that the Insurance So
licitors license shall contain the name OF
the company for which such solicitor is
employed, and no other
Il do not see that the law distinguishes
between the privileges of an agent and a
broker: each is required to have general
| insurance license under section 654.'