The Marlboro democrat. [volume] (Bennettsville, S.C.) 1882-1908, 1904-02-12
INSURANCE LAWS.
Two Very Important Bills Passed by
the House Thursday.
ANTI COMPACT LAW REPEALED

And . Law Enacted TO Create the
Ofiioc OF State Insurance
Commissioner With n
Good Snlary.
The House OF Representatives pass
ed two important bills on Thursday.
The Columbia State says: Three
years ago the general assembly passed
law prohibiting the Southeastern
Tariff association from coming into
the State to make rates on property
to beFinsured. This was known as
the anti-compactl law" and Mr.. VIM.
L. Mauldin OF Greenville was the
author. Thursday the house of rep
resentatives by a good majority pass
ed bill which repeals that act. MIR.
Maulding is also the author of the
repeating bill. The house passed the
Kibler bill providing for the Office of
insurance commissioner. Each bill is
dependent upon the other, for it is
proposed that the insurance commits
sloner keep the companies from
RUNNING up the rates, and In return
for removing the embargo against the
association the companies are to give
lower rates.
The insurance commission under
the bill is to be charged with the ex-
ecutiOn Of all laws, is to be elected by
the legislature, is to receive salary
OF 81, 800 year and S100 for Office
expenses, the funds for this expense
to be derived from a tax of one fourth
OF one mill on gross premiums in addi-
tion to other taxes paid by insurance
companies. The Mauldin bill provides
that there shall be an examination by
proper officials into the cause of fires.
The companies which belong to an
association are permitted to conduct
business iii the State, provided that
the purpose Of the association is not
to establish excessive or unreasonable
charges for insurance. Upon the COM
plaint Of citizens, the insurance COM
missioner is authorized to order the
company to correct the rate and to
order restitution of over charges.
There was quite Il discussion over the
bills.
Mr.. Kibler said that wherever such
an act has been passed in other States
it has been productive Of great good
The people need protection, and the
comptroller generals department. is
unable to keep up properly with this
vast business. The department of in
surarce would not cost dollar of ap-
preparation, the insurance commission
er's salary would be paid by the in
surance companies and the amount on
each policy would be SO small that
there would be no effect on the
rates. fntreply to Mr.. CASTOR, Mr..
Kibler said that he is sure that the
comptroller general, who has the
whole tax business of the State to
look after, cannot give the proper at
tention to the insurance department.
Mr.. Thomas favored the bill. The
comptroller generals department
needs to be relieved of some of its
duties, for that Office is required to
give great deal of time to personal
settlements with the treasurers and
auditors in the several counties. In
many of the counties thousands of
dollars might be saved if the settle
entS were made properly and the
comptroller general, who is entirely
competent to attend to the duties of
the insurance department, should be
permitted to give his entire time to
the more important duties of the tax
department. Mr.. Thomas then direc-
ted his remarks to the need of All in
surance department. The anti-com-
pact law is failure according to an
example which he cited. An agent
from st. Paul came liere recently and
raised the rate on building from LIS
to 1855 and all the local agents had
accepted the rate SO made. Property
owners should have an insurance com
mission to whom they can appeal for
advice.
Mr.. CASTOR opposed the bill on the
ground that the companies are called
upon to pay the expense and he sus-
pected that there would be a tendency
for the commissioner to feel himself
an employe Of the companies as well
as the State.
Mr.. DeVore opposed the bill. There
is no complaint from the comptroller
general that he is oyerworked or that
he wants to be relieved of the depart
ment OF insurance. 1t Is wrong in
principle for the man who is to over
look and inspect the operations of in
Surance companies to be paid by those
companies. The railroad commission
is not worth three straws to the State
today, and the office of insurance
commissioner would not be worth
three Straws for the same reason that
it should be kept up by the State and
not by the insurance companies.
Mr.. Rainsford wants the office of
insurance commissioner merged with
that Of bank examiner created several
years ago.
Mr.. Beamguard favored the bill
but wanted to adjourn debate until
other insurance bills could be taken
up in connection with it.
THE ANTI COMPACT LAW.
Mr.. Mauldin spoke in favor of sepa-
rating the work of the insurance de-
partment from the other duties of the
comptroller generals office. He de-
clared that the Southeastern Tariff
association is a monopoly and he had
introduced the bill which is now a law
forbidding them to operate in the
State. The Kibler bill and his own
bill would put this State on the same
footing as North Carolina and Georgia.