Pine Bluff daily graphic., 1905-07-30

Considerable discussion has arisen
| in insurance circles as to the RIGHT of
| insurance companies which have re-
| tired from the state to transfer exist.
ing policies and make necessary en-
dorsements On the policies, as the in
| ability to do these things has been
cited as one reason which may lead
| the companies to cancel all existing
Rock Gazette
Some of the agents claim that the
| companies will lay themselves liable
to the penalty imposed by the anti
| trust law if they transact any bCsi-
ness in connection with the policies
which are now in force and they de-
clare that this has left matters in
such a shape that the companies are
| likely to quit the whole business and
cancel their existing policies.
The insurance men have not re-
ceived any official opinions. however.
that would lead them to believe that
they would be prosecuted for such
acts. On the contrary, State Audi
tor and Insurance Commissioner
Moore has given an opinion in answer
to an inquiry in which he says that
be does not think it would be viola
ton of the law to transfer policies
from one location to another or to
make any endorsements on the same
that may be necessary.
Attorney General Rogers has not
given an official opinion upon the sub
ject, but it is understood that he has
expressed himself verbally along the
same line. Mr.. Rogers is out OF the
city at present and his opinion
could not be obtained vest 3rday.
Transfers and endorsements on pol
icies would necessarily have to be
made at thu home offices. as the COM
panies can not under the law have
agents in Arkansas, but under Audi
tor Moore's opinion there would be
nothing to prevent the policy hold
err from sending his policy to the
home Office to have the desired
changes made. It is pointed out,
however, by insurance men that this
will be a very unsatisfactory method
of conducting business, both for the
companies. and the policy holders.
, Can Foreign Adjusters Work Here?
Another important question to the
insured. and one on which Attorney
! General Rogers has not expressed
himself is as to whether it will be
violation of the law for companies to
send adjusters into the state or en-
rlov adjusters here to settle losses on
no,icies issued outside OF the state
! after the antitrust law became et-
j fective.
Auditor Moore expressed himself
decidedly on this point yesterday de-
c,aring that he would consider 1T dl-
,ect violation of the law. He salo
that the act makes it unlawful for the
comnanies to transact any business IN
tho state and that the adjustment OF
losses would be necessarily regaroeo
as the transaction of business. Ih1s
does not apply to policies written pe-
f,,e the law went into effect. as noth-
;no could be done which would apfo-
gate contract previously "'aoe'
There will be nothing to prevent the
! comnanies from sending money INTO
tho ctate TO pay losses, but the ad-
iustment must be made OUTSIDE the
state.
Question Of Reinsurance.
r. hoe haen suggested recently that
the insurance problem may be SOW
cd by the local companies taxing all
tho insurance and reinsuring the
risks in foreign companies which can
NOT do business in the state, but Az
tornev General Rogers has given oe-
c;ded opinion upon the question. he
has held that no company authorized
70 do business in this state can rein
eure all or any part of it's liabilities IN
any company which can not comply
with the provisions of the antitrust
law The state would have evidence
of violations of the law in this partic-
ular through the reports OF the locai
companies, which must show all 1he
risks that have been reinsured.
Auditor Moore differs with Mr. hos
ers en- this proposition, holding that
local company. as we'll as any indi-
v;dua, has a perfect right to send
applications for insurance to compa
,;os outside the state. The question
Of adjusting losses might present
some difficulties, but it is supposed
+,a+ in such cases the local compa