Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1903-01-21
INSURANCE BUSINESS
THE REPORT OF COMMISSIONER
LeuTz SHOWS GROWING IN.
suRANcE BUSINESS.
DEPARTMENT HAMPERED BY
LACK OF FUNDS FOR cLER.
IcAl WORK OF OFFICE.

of the Department Shown by An.
nual Report Soon to Come From
Hands Of Printer.
The biennial report of Insurance
Commissioner Ferd Leutz, which will
O come from the hands OF the
printer. shows a remarkable growth
of the insurance business in the state
in the last decade. and an equally
large increase in the amount received
by the state from taxes upon insur-
ance companies. The biennial period
Just closed has seen an increase or
500. 900 in the of the state
from insurance business alone, and
the year 1903 is expected to be a
record breaker in the state. Life in
surance companies are doing an es-
pecially large business in the state,
the climatic conditions being such
that especial inducements are held out
to the companies by the low death
rate.
The of the state from
taxes on insurance companies have
increased from $17,391.91 for the BIZ
ennial period in 1SS9-9O, to $93.257.73
for the biennial period just closed.
At the present rate of increase it is
expected that the coming biennial
period will show total to the
state from this source of $125, 900.
Several changes in the laws are
recommended by the commissioner. 1t
is stated that North Dakota is being
flooded with mutual companies actual
ed by different motives. to form a o r
poration to carry on the insurance
business. All that is necessary Is for
the company to file articles of incor-
poration conformable to the law and
obtain 5000. 900 in applications. This.
the commissioner says. is a liberal
provision on the part of the state but
is not so satisfactory to the insured,
as the indemnity is uncertain. especi-
ally in case of heavy losses or unfavor-
able conditions. The commissioner
thinks a deposit should be required to
be made. to protect the public from
unreliable state mutual companies.
While many of the state mutual COM
panies have good records and are safe
and reliable, the present condition of
the law gives the opportunity for I'M
scrupulous persons to take advantage
of the good names of safe companies
and foist upon the public unsafe and
unreliable companies. which may
cheat and defraud the public and es-
cape punishment under the existing
law.
The companies organized and doing
business under the laws of the state
are doing a good business. The only
exception noted is that of the State
Mutual of Hankinson. which failed
and d~efrauded 2 large number of pol
icv holders. This failure. according to
the commissioner. was due to gross
mismanagement. and a detailed report
is presented Of the matter.
Regarding the recent advances in
rates by the old line fire companies
through the state. the commissioner
says: "The disastrous Fargo fire lin
1899 resulted in a bad showing for
North Dakota. The statistics of this
department for the past thirteen years
show that an average of 1852 per cent
of the premium receipts was neces-
sar to meet the losses incurred. If
the year 1893 is eliminated the per-
centage is reduced to 60.3. But these
companies point to the general aver
age. overlooking the fact that nine
wears have elapsed since the great
fire. and by common consent ad-
vanced the rates. This raise in rates
will cost the people of North Dakota
a large sum of money: yet it is notice.
able that there has been no effort upon
the part of the companies to curtail
operating EXPENSES. This procedure
can be counteracted and the people
of the state secure insurance at rea.
sonable rates bv organizing state rom
panies which shall he required to de.
Dosit with the state such an amount OF
cash or securities as may be determ,
med bv the legislature"
Figures for the insurance business
IF the state since statehood show that
in the thirteen wears since the state
was admitted risks have been written
aggregating S39S.7O1.31 Total pre
miums of $~6.513.516.69 have been re-
"eived by the companies. Total losses
incurred have beer $4.S96. 431.25 and
the total losses paid have been s4.91S.
651 .95.
! Attention is also called by the report
to the fact that the approximation for
clerk hire now. with 500 900 of hi,
ennial receipts. is only 81 900 per an.
mum more than it was at statehood
with receipts Of only $4,000. Addi.
tional appropriation for clerk hire is
p pressing necessity if the interests of
the state are to be conserved and tho
state properly protected from unsafe
n unreliable companies.
The insurance department returns
greater to the state than anv
other department of the state govern.
ment. With the increasing number of
companies. additional duties imposed
ny new laws, and the constant watch.
fulness and voluminous CORRESPOND.
ehce necessary to protect the state
from unsafe companies. the request of
the insurance department for an addi-
tional appropriation for the ~clerica,
and Office work will do,hx1..