Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1905-05-25


stroy all inducement to authorized
foreign companies to enter the state.
Ii would be better, he held, to do away
with fees from the companies and
simply license agents. The message
follows:
Against Graveyard" Insurance.
"As indicated By its title. this bill
If ii becomes a law, would sanction
the transaction of what is known as
underground or graveyard insur-
ance In this state 1t woul evan seem.
ugly give to unlicensed companies the
advantage over those duly authorized.
1t is urged in its support that the IL
cansed companies are not sufficient In
number or strong enough In aggregat-
ed capital stock TO carry the risk on
all property situated in large cities.
Such an argument does not appeal to
ne as having any force. 1t IL an I'M
wise public policy to provide benefits
or to give protection to one who re-
fuses to comply with the law. 1t
weakens the force Of all law to en-
b"aft upon II any condition to the ef-
lGct that II the necessity exists J.
may be ignored. 1t is true that the
provisions Of the proposed act con-
templates the licensing Of an agent
or broker who acts for the unlicensed
company, but the statutes now pre-
scribe that both the agent and the
company for which he acts, should
procure authority from the state to
transact business within Its borders.
Ey the terms Of this BILL the licensing
o. the agent has the effect OF license
To the company itself for the purpose
indicated 1t would seem that If the
license TO the agent is sufficient to
cover the company in one case, there
could be very little reason for requir-
ms any license whatever from insur-
nncc companies Of other states or for
Cign companies. The statutes Of this
1tate require many things of the
companies which are licensed, and
prescribe heavy penalties for violation
Of the laws Of this state None OF
these requirements for the protection
o. the citizens Of this state apply to
insurance contracts which would be
entered into with these foreign COM
panics which would be admitted here
were this bill to become a law. None
OF the penalties prescribed are made
applicable to the companies In which
,ais insurance Is permitted, and can
I1t ilprnGnpn hp nnTnrpnI npninu Of
them. What inducoment Is therefore
held out to these companies which
submit themselves to the Jurisdiction
Of the state and to the penalties pre-
fcribcl by It's laws? 1t would be a
gross Injustice to the licensed com.
ranies to permit such bill to be-
come law. II would be gross in
justice to the agents of these licensed
companies TO authorize or empower
the agents Of unlicensed companies to
transact the business Of fire insurance
IN the state.
"ln addition to this, the opportunity
for the perpetra'ion of fraud Of the
rrosscst character Is presented. The
affidavit of the agent alone who Is in
.crestcd In the transaction and who
profits by It, should not be taken as
proof of the fact that the risk on the
property sought to be insured could
not be placed in authorized compa-
MES. II It be true that the interests
of the assured cannot be protected
from loss or damage by fire in the
40 al lnA h@
laws should be so modified or amend.
cd rs to protect that interest by pro
viding for the increase in number
and capital stock OF authorized com
lnnlos. or by some modification or
other amendment which wouli put all
tho companies In which insurance
would be affected on the same basis.
It would he far better, II It be fact
That authorized companies could not
carry the insurance business Of the
state, to provide that licenses be re-
ouired of none and that the business
be done by licensed agents than to
prescribe that the agent might be II
censel to do business for unlicensed
companies In certain cases, and, In
other cases, to do business alone In
oil authorized companies.
so far as can he ascertained no
serious complaint has been lodged
against the statutes on the subject rs
at present they exist. 1t is difficult to
conceive why legislation should be ex-
tended to the insurance OF property
situated In this state to unauthorized
companies.
III insurance III unauthorized COM
ranics Is called for at all, II can be
obtained under this act, the provisions
oi which are fair and just to the com
antos complying with the laws OF
the state. The bill under considera-
tion Is unfair ANA unjust to such com
r"nics and takes away the induce
mont which must have been potent
with them In coming into tn" state to
act under the sanction Of lis laws.
should this bill become a law no for
cign company would have any occa.
So. a., - 80