Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-08-19
ON LIFE INSURANCE
Senator Dryden to Reintro-
duce His Bill.
TALKS WITH PRESIDENT
PLAN FOR FEDERAL REGULA-
TON OF COMPANIES.
A Superintendent of Insurance in
Charge of Division in Bureau
of Corporations.

Senator Dryden, who has recently discuss
ed with the President his plan for federal
regulation of life insurance companies, has
announced that he proposes reintroducing
his bill to accomplish that end early in the
coming session of Congress. Senator Dry
den candidly stated that there is within the
Senate considerable difference of opinion
as to the constitutionality of his plan. But
he proposes to continue to advocate it and
to develop the legal status of his PROPOSE
ton.
His bill provides that there shall be ap-
pointed in the bureau of corporations an
officer called the superintendent of insur-
ance in charge of a division to be called the
division of insurance. There is also to be a
national actuary to assist the superntend-
ent of insurance and other officers necessary
to carry on the work contemplated.
The bill declares that policies of insur-
ance shall be deemed articles of commerce
and instrumentalities of commerce, and in
chat way life insurance transactions shall
be deemed TO be interstate commerce. The
act is not to apply to companies transacting
their business solely within the state in
which they are Incorporated.
Provisions of the Bill
The superintendent of insurance is from
time to ime. subject to the approval of the
Secretary of the Department of Commerce
and Labor, to fix fees and establish rules,
regulations and requirements not inconsist-
ent with law. for conducting the business
of the division. These rules and require
ments shall provide methods and forms for
annual reports to the superintendent of In
surance by corporations transacting inter
state or foreign commerce insurance. These
rules and requirements shall also provide
that at any time when, in the judgment of
the superintendent. it shall appear requisite
for the security of the policy holders of any
corporation transacting interstate or for
eign commerce insurance the superintend-
ent Shall cause to be made, by himself or
one or more competent and disintereSted
persons specially appointed by him for that
purpose, an examination into the business
and affairs of such corporation for the pur-
pose of determining whether it is solvent
and trustworthy.
Reports to Be Made.
Reports are to be made by the COM
panes 10 the superintendent of insurance
setting forth the value of all outstanding
obligations on the last day of December, and
they are to make deposit with the treas
urer of the United States to guarantee the
faithful performance of their contracts. 1t
IS also provided that whenever the laws of
any other country shall discriminate
against the Insurance companies of this
country, then similar dscrimina ton
against the country involved shall be made
Every company before transacting business
in a state or territory shall appoint an Off
Ger IN such state or territory who can be
served with a due process of law. When
ever company refuses to pay judgments
its licenses to do business are to be re-
voked after being in default for sixty days
The bill further provides that the Sc
cur1ties transferred to and deposited by any
corpora ticn with the treasurer of the Unit
ed States, shall remain in the custody of the
treasurer until all the obligations of such
corporation that have arisen out of inter
state or foreign commerce insurance shall
have been discharged or otherwise ter
minated. Whenever receiver shall be ap-
competent authority and shall present to
the superintendent of insurance a duly Ger
tined copy Of his appointment, together
with an order of court for the delivery to
him of the bonds or securities held by the
treasurer as guaranty for the contracts
OF the corpora ton. in order that they may
be distributed among the beneticiaries in
accordance with the principles of equity,
the superintendent shall apply to the treas
urer for the securities, and the treasurer
shall deliver them to the receiver appointed
by the court
1t shall be the duty of every CORPORATION
doing business under this act to render an
nuai reports to the superintendent of in
surance on the 10Th day of January. or
VUhin sixty days thereafter, in such form
as the superintendent may prescribe Civ
Ing a detailed statement of its assets and
liabilities and of it's receipts and dsburse-
ments for the calendar year last past. All
such reports shall be suitably arranged and
published in proper and convenient book
form, and shall also be transmitted to Com
gFesS with each annual report of the De-