New-York tribune., 1905-02-28
INSURANCE REGULATION.
Bill for Government Control Intro
duced by Senator Dryden.

Washington, Feb. 27.-senator Dryden. of
New-Jersey. to-day introduced a bill to put in
surance companies under government control
10 be in charge of a superintendent in the Bu-
reau of Corporations. Department of Commerce
and Labor The following the principal
provisions OF the bill for the regulation of in
surance, in the form of an amendment to the
act to establish the Department of Commerce
and Labor:
That there shall be in the Bureau Of Cor
porations officer called the superintendent
OF Insurance, in charge of a division of SAID
bureau 10 be called the Division of Insurance,
VINO shall be appointed by the President By and
with the advice and consent Of the Senate
There shall also be in said division an
ohclai to be known the national actuary.
VINO snail aid and assist the Superintendent OF
d%Lce % IN the capacity of an actuary Ihere
snall also be chief clerk to the superintendent
OF insurance, " no shall be called the deputy su-
Perlntendent No officer or empoye who may be
employed in the Insurance Division of said
bureau shall be interested directly indirectly
otherwise than a policyholder in any insur-
ahce corporation, associat ton or partnership
All officers and employees of this division
pther than the superintendent snail be appointed
oy the secretary of Commerce and Labor.
Policies of insurance are hereby deemed 10 be
articles of commerce and instrumentalities
thereof The delivery by said corporations Of
sdio contracts or insurance from the state Ter
ritory or country of the locality. to citizens cor
rorauons or other persons located in other
states, Territories or nations, the transmission
hy the insured from such other States, Terri
tories or nations of the premiums or other val
liable consideration for said policies to the home
office Of the company. in the State, Territory or
iatlon OF the locality II and when sald locahtE
Is situated in another State, ma ton or Territory
and the transmission by the said insurance com
pany from the home office to the insured IN olheI
States. Territories foreign nations than tnat
of the locality of any sums OF money whlch from
time to time shall become due the insured on
said contracts of insurance, are hereby de-
clared and deemed 10 be transactions In inter-
state or foreign commerce. as the case may pe'
but the provisions of this act shall not apply 10
any corporation transacting the business OF IN
surance exclusively within one state QistrlCt
or Territory. and provided further that TINS act
shall have no application TO any releloqs vi
charitable benevolent or purely fraternaI socle'S
or association.
Every corporation transactlng interstate or
foreign commerce insurance shall, within Sixty
days after the passage of this law, ana every
company hereafter formed. before engaging IN
interstate foreign commerce insurance, shali
comply with it's provisions by filing with said
Superintendent a certified copy OF its charteI
and bylaws, together with an officially certlneu
copy Of the last complete statement OF lts colI-
diton and affairs filed in the office OF the super
intendent, Commissioner of Insurance, or olner
authorized official. for the States. Territory dls-
trict or nation Of its origin. and certificate un-
der the seal Of the proper officer OF It's origin.
and a certificate under the seal OF the proper
officer of its government, setting forth the value
Of all outstanding obligations OF said corpord
tiOn on the last previous thtrty-hrst DAY
OF December. and certifying that me s,.a sa.a
corporation is authorized to do business
in the locality where II was orsaIZeu.
Every corporation. at the time OF nNhs
the copy Of its statement aforesaid,
must deposit with the Treasury of the United
States guarantee for the faithful performance
of it's contracts of insurance. United states
bonds OF other securities satisfactory 10 sald
Superintendent 20 the amount OF 100000. pro-
vided however, that the superintendent OF IN
surance may accept in his discretion. IN Ileu OF
such deposit. certificate issued under the sea-
OF the Insurance Department of the State OF the
locality, certifying that said Insurance Depart
ment of the State Of the locality certifying that
said insurance company has deposited under
the laws of the State of its locality with the au-
thorities of said State cash securities TO the
amount of at least 100000, for the protection
of their policyholders
Whenever a corporation transacting interstate
or foreign commerce insurance shall have COM
piled with the requirements OF this act, ana the
superintendent shall be- satisfied as to its soi-
vency, it shall be the duty Of the said superln-
tendent TO furnish certificate thereof, ana
license shall be thereby granted to carry on the
proposed business of insurance. and under such
certifcate the Ucensee shall have power and au-
thority to transact such interstate or foreign
business in any and all parts OF To- Unlted
States. -
whenever final Judgment, from which no aq-
peal is pending. is obtained against any corPo-
ration upon q liability arising under a contract
OF interstate or foreign commerce lnsuranC III
a court Of record of the United states havihs
Jurisdiction of the parties and subject natter'
and execution shall be issued and returned u!l-
satisfied, and duly certlheo copy 90 oL tie IL
ceedines presented to the Superintendent OF II
surance he shall forthwith give notlce 10 tne
corporation that If the said judgment Is not pau
lyCirh
the authority to transact interstate OF IoielsH
commerce insurance may be revoked ana IL, at
tba end Of said sixty days evidence OF the pd!
mont of said Judgment has not oeeh Hleu VIZ I
The SuDarinrendent of Insurance, ne may III ms
diecration revoke the license OF sald c"'P"la
go Give DubliC notice thereof
II shall be the duty of every corpordtloL 4 uoll.s
,,-soase under this act to render annual reports
- ~, c,,oerintAndent of Insurance on the NJ
toa1.b dav of January or within Sixty Gays
ttorea f,sr in such form as the salo SupeIlII-
tHr5ar,+ nav nrescribe, giving a detalleo stdte-
n-t of its assets and liabilities. ana OF ltS re-
ceints and disbursements for the caei'IdI car cor
last mast All such reports shah De suIlaolS
arranged and published, in proper ana ,.e, coI.en
iant Nook form and shall also oe transmitted
~ the congress of the United states Win ~ elcA
annual raDort of the Department OF commerce
Whenever from the statements ana reports
ror=in re1uired or from any other ln1oTIna-
,,on II shall appear to the superintendent oi IT
snrance that the financial condition OF sald cor
Toratior doing business under TINS act Is , uLI.
ssaFa - eboll he the duty of the superintendent
of Insurance to order such corporauoh 10 Lhdhe
yood its financial condition, and II TINS pe not
5one v,itbin sixty dayA after such order Is gwen
~, c,,nerin+Andent of Insurance shall revoke
+he cert1Acate of authority 10 such corporation
N transact business uncer TINS act anu Pupllc
po.i,e thereof shall be given in such manner
as nav he prescribed in the rules ana reSuId-
lions herein provided which Information shalt
oIso bo transmitted 10 the proper orlcer charged
T-itb the execution of the insurance laws or the
4aI