The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-03-02
LIVELY fitting
ABOUT INSURANCE
Is The Big Pistol Used
On Agents.
HALF WAY FAVORABLE
The Bill Concerning Reserve Funds OF
Home Companies And That as to
Commission Large and Small to
Agents Stirs Up the Commit
tee and Speakers.

ing at the meeting OF the JOINT com
mittee on Insurance yesterday, and as
the result q favorable report was
made on the bill lalolwing home COM
panies to deposit their reserve with the
Insurance Commission and indicate
this on their policies.
4 House favorable and a Senate un-
favorable report with a minority fav-
orable report was given to the bill,
which it is urged is aimed at keeping
companies of the Southeastern Tariff
Association from holding up agents
from doing business for companies
paying a higher commission.
The bill of Mr.. Hankins of David
son. to regulate life insurance COM
panies was eplained by Insurance
Commissioner Youngx. 1t affects only
home companies, allowing them TO
deposit the reserve bonds on securi-
ties with the commissioner this TO be
certified on a policy that such re-
serve secures the policy as far as II
would allow the agents to deceive IN
nocent purchases by statements that
the full amount of the policy is on
deposit He said il was simply ali
advertising scheme. To this Mr..
Young answered that he was no party
TO any scheme, and that the agents
of the company represented by Mr..
Boushall and other foreign companies
deceived by statements concerning the
value of the policys they offered that
this simply gave home companies as
much an advantage as foreign COM
panies. This met with applause. Later
he stated that it would be of n benc-
fit to new companies starting. up. Mr..
Boushall declared he did not intend
TO say that Mr.. Young was in q scheme
that no better security was offered.
and that there was discrimination in
taos as against foreign companies.
which did not have this advantage of
an advertising scheme
Mr.. Webb. Of Buncomhe. declared
he did not agree with Mr.. Young and
entered his protest against important
legislation being rushed during the
closing days of the session, that the
bills might be meretorious but that
he did not understand the bills and
would vote against them ALL Mr..
Odell, of Concord. said that il the bin
Was right, and if it gave an advantage
to home companies. he favored it.
Mr.. John G. DreWry said he did not
believe it would aid the nome compan-
les.
Mr.. Young said that he had consult
ed New York and Indiana laws, and
the bill was in a shape akin to these,
out misrepresentation. AS the result
Of explanations of the bill by Mr..
Young, it was declared by Senator
Webb that this meant another clerk
for the Insurance Commissioners in
order that the law might be carried
out The bill was then ordered fav-
orably reported on the vote of two
Senator'S and five Representatives..
A bill to amend chapter $50. Laws
IF Int, f.lClf
Companies was reported favorably.
This provides that the reserve fund
therein provided for shall not be avail
able for or used for any other pur-
pose than the discharge of policy OBJ
legations, but shall be q trust fund TO
be held and expended only for the ben
eft of policy holders.
The bill lof Mr.. Hankins to define
taxes and fees to be paid by domestic
mutual fire insurance companies doing
business jill not more than two com
panies was withdrawn by Mr.. Ham
kins
Here Mr.. Webb gave notice that he
would retire from the committee rs
the confusion in the hall was so great
that he could not hear or understand
Just across the aisle a committee was
hearing q. liquor bill from Cumber-
land and the orators were going at the
desk. we can shout as loud as they,
exclaimed Mr.. Biggs in a loud voice.
Then Chairman Ellcr went over and
mildly besought the committee TO have
its orations in a little gentler tone
Mr.. Webb also declared that he had
not investigated the merits of the
bills and would vote against any such
legislation till he did understand it.
The bill of Mr.. Scales was next taken
IN This DrOXidoS that 70 iOSIl &c
companies in North Carolina shall dis
criminate against other companies be-
cause these offer to agents n higher
rate of commission than 15 per cent
by requiring that agents do not handle
the business of these other companies
il they wish to handle the business OF
companies in the Southern Tariff AS
ISOLATION.
Mr.. Scales said that some fire insur-
ance companies allow Is per cent
commission to agents and others more
and that no companies should como
in and prohibit others from paying
what they desired. and that such 8
thing was not right.
1 Mr.. Webb here insisted that the
confusion was worse than COMPOUNDED
and insisted that a new meeting place
be selected. He moved that an ad
iournment he had to the office of the
Insurance Commission and the meet
ing so ordered. Then committeeman
insurance men and others interested
climbed the steps TO the upper room
and business was reconyened.
Mr.. y. w. McAllister. of Greensboro
representing companies at Greensboro
spoke for the bill and asked that Mr.
Webb reconsider his declaration an,
vote for the bill on its merits. Fl,
said that his company paid TO faithful
agents some extra compensation. tina
other companies had some years as,
forced agents to leave home compan
les. which then took up and educate,
new agents. and that outside compan
les having now sought the services o
these new agents had no right to com
in and have contracts signed tina
agents would not accept more than l
per cent. commission. He exhibited
batch of letters from agents over tn
state complaining against this attempt
MIR. Joyner. of Northampton. sail
that being All agent he knew tina
these outside companies in the South