The Kemper herald. (Scooba, Miss.) 1875-1908, 1904-05-19
MISSISSIPPI
HAPPENINGS
MARsHALLCoUNTY WANTS THE
EXPERIMENT STATION.
NAY BE THE BOIL WEEVIL
outline OF State Auditors Depart
ment OF Insurance, its Duties and
The Benefits Derived From Same
BY The People. Other News Items.

-Four years ago a department of in
surance was added on to the Office of
Auditor for the State of Mississippi
and the regulation of life, fire and ac-
cldent insurance begun. The depart
ment after a few years began to as
sumo gigantic proportions and became
too large for an adjunct of another
department, making it necessary to
create department for the exclusive
handling Of this business. Hon. w.
Y. Cole, who had the handling of the
insurance department during his term
OF four years as Auditor, was elected
to the office and is now performing
the functions of the same. Believing
that not one man in a dozen in the
state at large has a clear conception
Of the duties and responsibility of the
office, and the benefits to be derived
by the people, this article is offered
as partial statement of facts con-
corning it. Too much space would be
required to take the matter up and
handle in detail, but few of the most
important points will be given.
Mississippians pay annually for the
different kinds of insurance the enor-
nous sum of over five million dollars.
This is in excess of the amount paid
for taxes of all kinds, and the need
OF protection for those who insured
had been felt for some time. There
are thousands of victims who can bear
testimony to the lax methods in vogue
in the past. Wild cat and irresponsi-
BILE concerns had the same privileges
as those that were on firm financial
basis and were just as free to send
their solicitors into the state and take
the peoples money without the hope
OF ever returning a cent if loss should
occur. The principal duty of the In
surance Commissioner is to thorough
ly investigate every company offering
to do business in the state and ascer-
tain its undoubted responsibility be-
fore granting license. He is empow-
cred to visit the home office and de-
mand any proof that he may see fit
to satisfy himself as to the absolute
reliability of the concern. After this
has been done to his perfect satisfac-
tion there are other laws and regula-
tions that must be compiled with be-
fore license is issued. The protec-I /
tion to legitimate companies is also an
item as it prevents illegitimate ones
from coming in and doing business at
rate impossible to be met by those
that were compelled to pay losses
then too, the failure Ct a company to
make good its losses promptly preju-
dices the people against all insurance
companies and decreases the volume
to some extent. On the other hand,
the commissioner stands between the
companies doing business in his state
and losses from incendiary fires by
the insured for fraudulent purposes.
Where there is suspicion attached he
is compelled to investigate and de-
termine as far as possible the guilt of
the accused. All agents for insur-
ance concerns doing business in the
state must have license and the com
missioner must see that the law is
strictly enforced along this line. Too
many cases in the past have. proven
that parties without this license were
soliciting insurance, and there was no
one to look after the states interests.
The Insurance Commissioner is a me-
diator between the companies and the
people who insure, and his duties are
to see that neither side is imposed |
upon.
Another question uppermost in the
minds of the people who have given
the subject thought is, how is he
paid and from whose pocket does il
come? Not unlike everything of this
character, it comes from the pocket |
of those who desire protection and
patronize insurance companies. But
the state of Mississippi has been pay
ing for this protection all along
whether it was gotten or not. Neigh
boring states have for years maintain
ed such an Office and the rates in Mis-
sissippi were on par with the rates
in those states. The rate here has not
been increased more than in them, so
our people are paying nothing addi
tional for the protection now afforded
them.
Since the creation of this Office the
states revenue from insurance COM
panies and agents has more than
doubled. Four years ago the amount
received was only $4,000 which has
now increased to $125,000 and bids
faid to go far beyond that figure this
year. 1t is just as well that the state
get this revenue as she is entitled to it
and the policy holders pay no mere