The Saint Paul globe., 1905-02-19
ADVOCATES STRICTFR
INSURANCE LAWS
Commissioner O'Brien Outlines
His Plans for Re-
form

Strict state control of the great in
surance companies transacting busi-
ness In Minnesota is advocated by
Thomas d. O'Brien, state insurance
commissioner. Mr.. O'Brien has been
In office less than two months. but he
has already gained a keen insight into
its duties and responsibilities, and is
determined to administer the office on
a high plane. Outlining the work of
his office and the policy to be pursued,
Dir. O'Brien said:
There are about 500 insurance companies
auInorlZed to do business in Minnesota
The list includes insurance comma mes of
every description, from the great life in
surance companies down to the small as
SeSSment organiza tions which contract to
see that the policy-holder is decent1y
buried and shall have funeral of a GER
tain character. 1t is possible now to obtain
most every conceivable loss or misfortune.
and as in the case of the Companies /
have last mentioned. at least that some of
our cherished desires will be accomplished
sooner or later. 1 have often Thought that
one would have less use for a policy in
surlng his burial than for anything else.
as it seems moderately certain that none
or US will be permanently left above
ground. II may be that this form of policy
is especially attractive, however because
IL provides as to the character of the fu-
neral
Immense Amount Invested
81 The carrying OF a policy of insurance
of one kind or another is becoming more
and more universal and an immense
amount OF the savings of our people is
invested in life insurance If seems anoi
nently proper. therefore that the corpora
TONS engaged in this business should be
made the subject of strict state control
anu IL Is with this object i'm view that the
state maintains a department of insur-
ance.
In addition to the collection of the taxes
and fees paid by the insurance comDanies
which last year. in this state. amounted to
a little more than 1903. 600. it is the duty
or the insurance department to examine
INTO the AFFAIRS OF the various insurance
companies. first, to ascertain that their
business is being conducted in accordance
with the law, and, further, that the finan-
clal condition of the companies is such
that their policy holders are protected.
The ideal department will be so organ
lied that its officers will be men capable
In the first place. of arriving at just con-
clusions upon all these points; next pos
sessing the frmneSS to proceed against the
companies which are being conducted un-
lawfully or are financially unsound and
finally, to exercise good judgment in not
interfering with the management of com
panies either upon insufficient grounds or
simply TO obtain notoriety. This does not
require that the officers of the department
should be men of transcendent ability for
ii is always easier TO come TO a correct
conclusion upon a question which has been
eXperimented with and hammered out
than it is to originate and develop line
of operation. In the majority of instances
the official supervisor is m the position of
than what will be done.
Object of Criticism
It is inevitable that any department
Wlelulng the powers and exercising the
discretion vested i'm the insurance depart
ment should be the object of more or less
criticism. The laws should be so framed.