The Dickinson press., 1903-01-24
INSURANCE BUSINESS
The Report of COMMISSIONS,
Leutz Shows Growing In
Snrance RusineSS

The biennial report of Insurance Com
missioner Ferd Leutz, which will oon
come from the hands of the printer,
shows a remarkable growth Of the insur.
met business in the state in the last de-
cade, and an equally large increase in the
amount received by the state from taxes
upon insurance companies. The biennial
period just closed has seen an increase
Of $4,000 in the revenues of the state
from insurance business alone, and the
1909 to be a record breaker in the state.
Life insurance companies are doing an
especially large business in the state, the
climatic conditions being such that es-
pecial inducements are held out to the
companies by the low death rate.
The revenues of the state from taxes
on insurance companies have increased
from s17,ao1.o1 for the biennial period in
$4,000, to s93,257.73 for the biennial
period just closed. At the present rate
of increase it is expected that the com
ing biennial period will show total rev.
enues to the state from this source of
$4,000.
Several changes in the laws are econ
mended by the commissioner. 1t is
stated that North Dakota is being flooded
with mutual companies actuated by dit.
ferent motives, to form a corporation to
carry on the insurance business. All that
is necessary is for the company to file ar
ticles of incorporation conformable to
the law and obtain 100000 in applica-
tons. This, the commissioner says, is
a liberal provision on the part OF the
state but is not SO satisfactory to the in
sured, as the indemnity is uncertain, es-
pecially in case of heavy losses or un-
favorable conditions. The commissioner
thinks a deposit should be required to be
made to protect the public from unre-
liable state mutual companies. While
many of the state mutual companies
have good records and are safe and re-
liable, the present condition of the law
gives the opportunity for INSCRIPTIONS
persons to take advantage of the good
names Of safe companies and foist upon
the public unsafe and unreliable COM
Panies, which may cheat and defraud the
public and escape punishment under the
existing law.
The companies organized and doing
business under the laws of the state are
doing a good business. The only excep-
tion noted is that of the State Mutual of
Hankinson, which failed snd defrauded
a large number OF policy holders. This
failure, according to the commissioner,
was due to gross Encouragement, 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 1889 resulted
in a bad showing for North Dakota. The
statistics Of this department for the past
thirteen years show that an average Of
75.2 per cent of the premium receipts
was ASSSSooiy W uASCI VIC lOSSCo IllSuls
red. If the year 1893 is eliminated the
percentage is reduced to 6o.3. But these
companies point to the general average
overlooking the fact that nine years have
elapsed since the great fire, and by com
mon consent advanced the rates. This
raise in rates will cost the people Of
North Dakota a large sum of money; ye,
it is noticeable that there has been nc
effort upon the part of the companies tc
%curtail operating expenses. This pro-
cedure can be counteracted and the peo'
pie of the state secure insurance at rea,
sonable rates by organizing state com,
panies which shall be required to deposit
with the state such an amount of cash o.
securities as may be determined by tie
legislature"
Figures for the insurance business OIL
the state since the state was admitted
risks have been written aggregatine
s328.7ol. 81. Total premiums of s6,513,
1860 have been received by the com
panies. Total losses have been s4,8o6,
431.25 and the total losses paidhave beer
A,olS,65I.95.