The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1903-08-14
COMPANIES DOING BUSINESS IN
ILLEGAL MANNER.
WHAT the LAW REQUIRES
state Auditor Gives Out Information
for Protection Of Policy
Holders.

Although the legislatures OF Mon
tana have seer fit to enact laws for
the regulation of insurance companies
doing business in the state and for
the protection of the. insured, no pro
vision seems to have been made to
enable the state auditor, who is the
head of the state insurance depart
ment, to investigate the actions of va
rious companies for the purpose OF
ascertaining whether they are comply
ing with the law. OF late several
reports have been made to that officer
that companies are operating in the
state in an illegal anner AS re-
ported it appears that companies are
writing policies who have no legal
right to do SO. In order that he may
become familiar with the facts and
that those who may be carrying in
shall become familiar with
the law he has called on the news
papers to assist him.
The law provides that no insurance
company of any kind can do business
in Montana without first filing the
company charter and a financial state
ment in the office of the state auditor
and receiving from that official a GER
tiicate authorizing it to transact bust
ness within the state. The presump.
tionssspsananEyaanalngsaA b anfake a
showing conclusive of it's soundness
that the authority to operate in the
state will be denied.
In speaking of the matter Mr.. Cal
derhead said:
"The law was enacted for the pur-
pose of protecting those who carry or
desire to carry insurance, through
this investigation of the financial
standing of the applicant companies.
when a company is authorized by
the state auditor to transact business
in Montana, it must then make appli-
cation and receive separate certifi-
Gates of authority for each agent who
is to solicit or write insurance, and
such agent must be a legal resident
of the state. And an agent must
have a certificate of authority for
each company he represents.
"After the formal entrance and pro-
per authorization of a company to do
business in the state the insurance
company must, at the commencement
of each calendar year thereafter, file
its annual statement, made in detail
may, each year, judge of the continued
financial condition of the company,
and must, each year, secure the ap-
pointment and authorization of its
local agents.
ANY violation of these laws estops
the collection of insurance through
legal action in this state.
Policy Holder Should Know.
cit will appear to those carrying
insurance that it is important for each
policy holder to- know that the COM
pany issuing a policy has been legal
ly authorized to do business in Mon
tana, and that the agent soliciting
or writing the policy has a certificate
issued for the year, authorizing him
to represent the company.
ITO provide this information this
Office has had a report printed Civ
ing a list of all companies and agents
authorized to transact insurance bust
ness in Montana for this year, and
this report will be mailed to any resi-
dent of the state, upon application"
Auditor C%alderhead further desires
that information of companies or
agents doing business without author
ity be given him, and he will be pleas
ed to answer all inquiries that may
be made concerning companies that
are operating in the state.