Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1904-03-31
Files a Defense of His Conduct
In Regard TO Examination
of Insurance Concerns
ACTED WITHIN LEGAL RIGHTS
Claims He Was Justified in Charging
Mileage to All Companies, Even
Though He Did Not Make Separate
Trips to Make the Examinations -
The Hearings Concluded.
Special to mes-Republican.


anittee on retrenchment and reform
last night and at the conclusion o.
the hearing he was excused from tur'
4ler attendance at the meetings or ihs
committee considering the charges
relative to his conduct OF the insurance
office while acting as auditor for ths
zee, Indian Territory. probably today
The committee is not ready ITO make
report.
Mr.. Merriam denies many of thu
charges that are made. Especially 'nha'
made by the New Haven company
that an examination was made by
placing a card under the door.
He admits having charged mileage
from Des Moines and return even when
the towns were near each other, ana
the examinations We're made III sue
cession and without return to Des
Moines He Claims he was Justified in
this by the statutes He denies that
he made such charges in the case OF
more than one company when they
were in the same city.
Mr.. Merriam admitted that the fees
received by him during the four years
OF office amounted to about $4,000.
His statement is full is as follows:
Reasons for Examinations.
The examinations were, in all cases,
ordered by the auditors Office for rea-
sons deemed good ard sufficient. They
were not ordered to enable the exam
u: H. fenc n
I charged, but to obtain information re-
garding the condition of the various
companies examined and the methods
employed by them in the transaction
sof their business. These reasons may
be grouped as follows:
First-To ascertain the financial
condition or the companies and deter
mine their solvency or insolvency and
assets and the establishment OF their
relative market value.
Second-To check and verify the
annual statements filed with the de-
partment and which are supposed to
exhibit the condition of each oragniza-
ton as of Dec. 81 each year, and the
figures appearing therein should corr
respond with the books at the home
office OF the company examined.
Third--To see that all companies
subject thereto paid taxes to the state
ct Iowa as provided in section 1883 of
! the code This necessitated check
ing Of each company's business trans
acted in the state, as most companies
are required to pay q tax on prerni-
rms secured on Iowa business. Espe-
cial attention was also given to the
matter OF Reinsurance, many compa-
MES insisting that the state was not
entitled to tax on business re-insured.
Fourth-To determine the extent to
which certain companies were comply
ing with the "anti-compact' law as set
out in section 1,754 Of the code.
Fifth-To see that certain compa-
MES were complying with the Iowa
laws regarding the classes of business
being written by said companies as
provided in section 1.709 of the code.
The department experienced much diff
ficulty in the enforcement of this sec
ton in addition to preventing the writ
ing of health insurance by certain
companies, the attorney general hold
ing in an opinion that such insurance
could not be legally written in this
state at that time.
Not all OF the reasons above noted
apply to all the companies examined.
that being determined by the chapter
under which the company WAS organ
lied or admitted to the state for the
transaction of business. However, in
all cases, the examinations were or
dered to satisfactorily establish some
or all the reasons mentioned.
Either in compliance with law or the
rules of insurance departments, COM
panies from Iowa were refused admis-
sion in many states for the transaction
of business until after an examination
had been made 8by the officials of the
state into which admission was sought.
1t is true these examinations We're
sometimes waived temporarily in Or
der not TO delay immediate admission
with distinct stipulation that the
examination was to be made later at
the convenience of said departments.
Such were the provisions generally en-
forced by Minnesota. South Dakota,
wisconsin. Michigan, Illinois, Nebras-
ka and Missouri, and l am of the opin-
Jon the Iowa department was justified
in enforcing similar rules and provis-
ions against the companies from other
states, if in fact it was not under obli-
cations to enforce the same under the
reciprocal features of sections 1886
and 1910 of the code. Many of the |
examinations ordered were to deter
mine the advisability of admitting new
concerns under the above mentioned
provisions.
Sec. / 1886 Laws of ether states -
When, by the laws of any
other state, any taxes, fines, penalties, |
licenses, fees, deposits Of money. Sc
curities or other obligations or prohi- |
billions are imposed, or would be inn
posed, on insurance companies Of this
state doing or that might seek to do
business in such other state. or upon |
their agents therein, SO long as such |
laws continue in force the same obli- |
cations and prohibitions of whatever
kind shall be imposed upon all insur-
once companies of such other state do
ing business in this state or upon their /
agents here"
"Sec. 1910. Laws of other states
reciprocity. If by the laws of any |
state. or the rulings or decisions of the
appropriate officers thereof, any bur-
den, obligation, requirement, disquali- |
f1cation or disability IS put upon any
company or association of any class |
in this state affecting it's |
freedom In that state. then the same or
like BURDEN obligations, requirement |
or disability shall be |
put upon every such company or as
ISOLATION OF the same class from that
1.