Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-02-27
FOR FEDERAL CONTROL
Governmental Regulation of
Insurance.
SENATOR DRYDEN'S BILL
PROVISION MADE FOR ExAMINA-
TONS OF AFFAIRS.
Proposed Retaliation Against Foreign
Observation-Disclosures
Of Licenses.
DRYDEN'S BILL


insurance, in line with President Roose-
velt's recommendations to Congress. Sem
ator Dryden has given many years OF his
life to the practical study of insurance,
and has been actively engaged in the execu-
tive control of insurance corporations.
This bill was submitted by Senator Dry
den to many eminent constitutional law
yers and to authorities of the administra-
ton, receiving the approval of all who ex-
amined it.
Features Of the Bill.
Briefly stated, the principal features of
the bill are these:
First, increased security to 100000
policy holders.
Second. decrease in cost of insurance
Third, increased returns to policy holders.
Fourth, decrease in the burden of taxa
ton.
needless clerical labor to meet the require
ments of some fifty different states and
territories, and consequent decrease In ex-
penSe rate.
Sixth, the stamping out of fraudulent In
surance enterprises.
Senator Dryden has no hope of action on
the bill in the remaining days of the pres
ent session, and his purpose in introducing
the bill at this time is to draw criticism of
its provisions and to obtain an Interchange
of views.
The bill creates the office of superinten-
dent of insurance in the Department of
Commerce and Labor who shall be aided
by a national actuary and such clerks as
may be necessary. Policies Of insurance
are deemed to be articles of commerce and
inStrumentalitieS thereof. The delivery by
corpora tons of contracts of insurance from
the state, territory or country of the 10
cality, to citizens, corporations or other
persons located in other states, territories
or nations, the transmission by the insured
from such other states. territories
lions of the premiums or other valuable
consideration for policies TO the home office
of the company, in the state, territory or
nation of the locality IL and when the To-
cality is situated in another state, nation or
territory, and the transmission by the in
surance company from the home office to
the insured in other states, territories or
foreign nations than that of the locality of
any sums of money which from time to
time shall become due to the insured on
contracts of insurance, are declared to be
transactions in interstate or foreign COM
MERGE as the case may be; but the provis-
ions of this act shall not apply to any cor
poratlon transacting the business of in
surance exclusively within one state, dis
t t[ict or territory; and provided further. that
this act shall have no application to any re-
Hgious or charitable, benevolent or purely
fraternal society or association.
Powers of the Superintendent.
The superintendent of insurance may
from time to time. fix fees and establish
rules. regulations and requirements not in
consistent with law, for conducting the
business of the division, which rules and
requirements shall provide methods and
forms for annual reports to the superin-
tendent or insurance, by corporations
transactlng interstate or foreign commerce
insurance, which annual reports shall be
duly attested under seal by such corpora
lions and acknowledged and sworn to by
the president and secretary thereof before
an official authorized to administer oaths.
The rules and requirements shall also pro-
vide that at any time, when in the judg-
ment OF the superintendent 1t shall appear
requisite for the security of the policy
holders of any corporation transacting in
terState or foreign commerce insurance
the superintendent shall cause to be made,
by himself, or one or more competent and
dlsinterested persons specially appointed
by him for that purpose. an examination
into the business and affairs of such cor
poration for the purpose of determining
whether 1t Is solvent and trustworthy.
Filing of Reports.
Every corporation transacting interstate
or foreign commerce insurance shall within
sixty days after the passage of this law,
and every company hereafter formed be-
fore engaging in interstate or foreign COM
merce insurance, shall comply with its
provisions by filing with the superintendent
certified copy of its charter and bylaws
together with an officially certified copy of
the last complete statement of its condi-
ton and affairs filed in the office of the
superintendent, commissioner of insurance
or other authorized official, for the states,
territory, district or nation of it's origin,
and certificate under the seal of the
proper officer of its government set
ting forth the value of all outstand-
ing obligations of the corporation on
the last previous 31st day of December
and certifying that the corporation is au-
n m h11cf ~, he
where 1t was organized. Every corpora
ton. at the time of filing the copy of its
statement, must deposit with the treasurer
of the United States, as a guarantee for the
faithful performance Of its contracts Of in
surance, United States bonds or other Sc
curities satisfactory to said superintendent,
to the amount of 100000: provided. how
ever, that the superintendent of insurance
may accept, in his discretion, in lieu of
such deposit certificate issued under the
seal of the insurance department of the
state Of the locality, certifying that the in
surance company has deposited under the
laws of the state Of it's locality with the
authorities Of the state cash or securities
to the amount of at least $780, 900 for the
protection Of their policy holders.
Provision for Retaliation.
Whenever corporation transacting inter-
state or foreign commerce insurance shall
have complied with the requirements OF this
act, and the superintendent shall be salts
fed as to it's solvency, 1t shall be the duty
of the superintendent to furnish certificate
thereof, and a license shall be thereby
granted to carry on the proposed business
of insurance, and under such certificate the
licensee shall have power and authority to
transact such interstate or foreign business
in any and all parts Of the United States
provided further. that when the laws, or the
administration of the laws. Of any foreign
nation shall discriminate against any cor
porations Of any state. territory or district
of the United States licensed to do business
under this law. by refusing to them license,
permission or authority to transact the bus
mess Of insurance in such foreign nation,
then and In every such case the superin- |
tendent of insurance OF the United States |
shall refuse license to any insurance corpo- |
ration OF such foreign nation so long as
such license is refused to any corporation
of any state. territory or district Of the