Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-12

passed on January %, 1887. what is called
An act to regulate insurance In the Dis
trict of Columbia Soon after the approval
of this act "industrial' life assessment as
socfations began to organize in the District
under the general corporation laws. with
capital stock, for the purpose of insuring
In small way children and adults on that
plan in case of sickness, accident or death
From the time-January 20, 1SS7-of the
enactment of the regulation act referred
70 until the insurance department was es-
tahlished in the District of Columbia, Janu-
cry /. 1902, seven assessment associations
of this kind had organized and Incorporated
here and were transacting business in the
District / called the attention of the cor
poration counsel to the question whether
there companies were duly incorporated
and should be licensed, and he advised the
licensing, which advice has since been fol-
lowed.
There were on December 81, 1904, ineor-
porated and doing business in the District
nine local life assessment associations of
the sort described which have paid-up capt.
tails ranging from $500 to $4,000. Under
the system adopted by these institutions
they are close corporations. The policy
holders have no voice whatever in their
management neither do they receive any
dividends or profits arising from the bust
ness. to which they are periodically called
upon to contribute, either weekly, bi-week-
ly, monthly bi-monthly, quarterly, semi
annually or annually, subject to forfeiture
l. tiiSs w tiOt icsBoilu plciuptlS.
The Superintendent Troubles.
Some of these associations refuse now
to obey sections 046 CAT and $50, as in
terpreted by the superintendent and at
torneys of this department and / believe
there has been no time since the insur-
ance department was established that
one or more of them have not been be-
fore the department for some non-com-
plianc6. Hearings have been given both
by the superintendent of insurance and
the president of the board of Commits
sioners. and legal opinions, which have
invariably sustained the department in
It's rulings, submitted by the corporation
counsel With few exceptions, the ASSOC
Citations have now complied with the law
with respect to submitting their qualify
ing documents, annual statements, adver-
Using them, taking out licenses for them
selves and their agents, and paying their
taxes
Early In the present year four of these
associations positively refused to fur
Their comply with subchapter of chapter
Is, except as to section 653. They were
given repeated oral hearings before the
sustained by the assistant corporation
counsel, after which they appealed to
the board of Commissioners before whom
they were heard and a brief fled, the
department being gain sustained under
the opinion of the corporation counsel,
approved by the board OF Commissioners.
At the request of the attorney for these
associations the case was re-opened and
a new brief was filed by him, in addition
to his subsequently arguing the case
orally before the corporation counsel
who rendered opinion. In this the
corporation counsel again sustained the
department, and this course the board
of Commissioners also approved. At this
stage of the proceedings one of the as
soctations withdrew from the contest
after which it Immediately complied with
all the statutory requirements. and was
licensed on October 81, 1905, to April 80,
1906, which is the date at which all in
surance licenses expire In the District
of Columbia. The remaining three as
sociations have carried the case to the
Supreme Court of the District, where it
is now pending.
This class Of assessment associations
maintain no reserve. They, therefore,
provide no protection to policy holders, ex-
cept their assessments If made, the amount
of their ca pital stock and surplus, such
they may themselves voluntarily elect to
carry. This state of affairs Qack of law)
is unfortunate for the insuring public. The
department has, however, during the last
two sessions of Congress endeavored, with
the cooperation of the hoard of Commits
law enacted which would condone innocent
past offenses and safeguard the interests of
the assured. In this We have failed, but,
Notwithstanding this, | most earnestly rec
omnlend that the effort be renewed during
the Fifty-ninth Congress, and l trust we
may be successful in procuring an act that
will be fair and just to all life insurance
assessment associations. and which will
safeguard the interests of policy holders.