The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-07-24
Act Relating to Burial Insur-
ance Companies in Court.
Suit Brought Oh Behalf of State
Commissioner.
HAS NO STATE PERMIT.
Harrison Association Has Not
Complied With Requirements.
Claimed That Mutual Company
Has Right to Operate.

Acting on behalf of the state insur-
ance commissioner, the attorney gen.
eral, through County Attorney Eek
stein of Sedgwick county, has COM
menced a suit against l. w. Gill, OF
Wichita. an undertaken, to test the act
relating to burial insurance companies
passed by the legislature last winter.
The suit has been filed in the Sedgwick
county district court, but will doubt
less come to the supreme court sooner
or later. 1t is a criminal prosecution.
The Harrison Burial association.
which Gill represents, claims the righs
to do business in the state without be-
ing incorporated as an insurance COM
pany or securing permit from the in
surance commissioner to do business in
the state of Kansas. This is contrary
to the law, which provides as follows:
Sec. 2. Before beginning the trans
action of business, such corporation
shall submit its charter, bylaws, form
OF certificate or policy and general plan
OF operation to the superintendent of
insurance, who, If he approve the same,
shall issue a certificate in writing au-
thorizing such corporation to transact
the business of burial insurance ac-
cordlng to the general plan thus SUBJ
mltted TO and approved by him, upon
payment to him of a fee of $25''
Although Gill is the defendant named
in the suit, the case is really between
insurance Commissioner Luling and the
Harrison Burial association. The Har-
risOn association has agents in great
many towns in the state. 1t is organized
on peculiar basis. The plan is copy
righted. and all the literature of the
association is copyrighted. In order to
use the plan the literature an un-
dertaker or other agent must pay a
bonus to the state agents, who are firm
of lawyers at Wichita. The home of the
company is Wisconsin. The basis of the
scheme is that on the death of one of
the members. all of the other members
contribute ten cents apiece, and the
money goes to the relatives or friends
of the dead member to pay funeral eX-
penses The company's defense to the
suit which has been commenced is that
the association is purely mutual and
benevolent; that it is not organized for
the individual proiAt of anyone. the per-
mission to use the copyrighted scheme
being the only source of income. The
company says that it has no funds out
of which the $25 fee to pay for a license
from the insurance commissioner could
be taken.
The law, however, requires the COM
panv to take out a license to do busi-
ness the same as any other mutual ben
eft insurance company, and 1t is TO test
the law that the suit has been brought
The difficulty is said to have started
through certain contested claims
against the company. Some of the dis
satisfied policy beneiciaries appealed
to the insurance department to have
their alleged wrongs redreSsed, and
after consultation with the attorney
! general and the county authorities IN
surance Commissioner Luling agreed
with the company to start a friendly
suit to decide the right of the company
to transact business without license
There is one other burial association
doing business in the state. It is known
as the Cooperative Burial association,
and its headquarters are at Abilene.
1t has taken out a license to do busi.
ness in the state. and is transactins
business according to the new law. This
Abilene concern is entirely independent
of the Harrison copyrighted scheme.
/ Insurance men say that there is muck
money to be made in the burial associa-
ton scheme IL it is well managed
Thousands of the poorer classes Of peo-
pie will take out a 800 policy, payable
in funeral expenses at their death. and
can pay 10 cent assessments without
having the obligation become burden
some. There are great many under
takers who become agents for tho
scheme and on payment of certain fees
| by the insured agree to bury them
when they die in certain described
degree of elegance There are severaa
such concerns doing business in Topeka
at the present time. l. :