The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-03-19
PREVENT FIRE WASTE
A New Law Prohibits Foreign Fire In
surance Companies From Fixing
the Commissions of Agents Re-
ceiyed From Home Compan-
les -.0ther Bills.
les .-0ther Bills.

be made in laws relating to insurance
and other subjects in his department
and under his supervision. In the DIS
charge of this duty the Insurance
Commissioner made the following re-
Communications to the last Legislature
through the Governor:
L. That additional room and clericai
help be provided for his Department
2. That a law be enacted requirins
proper exits and fire escapes Tor Ger
tain classes of buildings.
8. That code of State building laws
be provided.
companies be. granted by the Legisla-
ture.
5. That fraternal orders and all mu-
tual associations be required TO nave
a certain number of members In or
der to operate in the State.
6. That some changes be made III
the law governing the placing of IN
surance on State property, and thae
the provision for all State insurance
be paid by q special fund instead Of
out of the maintenance fund of each
institution.
7. That special care be taken to
prevent fires by providing fire walls,
fire doors and shutters and apparatus
for fighting fires at each State lnstl-
tuition.
8. TO provide a way of getting SER
vice on the Insurance Commissioner,
as attorney for service of foreign COM
panies, where the suit is within the
Jurisdiction of q justice of the peace.
The present insurance law was en-
acted in 1899, and has been added to
and improved by each Legislature
since, so that there was really little
left for the last Legislature to do IN
lieu of enacting insurance laws.
Life Insurance.
No laws were enacted affecting life
insurance but applicable almost en-
tirely to domestic life companies. One
law provided that where a life insur-
ance company in this State did other
business than life insurance the re-
serve required to be kept and set aside
for all life insurance policies, should
be held and kept for the protection OF
the holders of it's life policies, and
could not be used or touched for any
liabilities of the company incurred fol
other purposes or for any other bust
ness done.
The other law provided for what is
known as Registered" policies. I'm
der it's provision a company issuing
life policies can deposit with the IN
surance Commissioners i'm such securi-
ties as by law they are allowed to IN
vest in, the full amount Of the Legal
reserve on their policies, and have the
same certified to. The certificate is
attached to each policy and the Conn
missioner is required to hold the re-
serve for eacllN policy so registered.
This will be an advantage for our
home companies, and a protection tc'
each policy holder for he can know
when holding a Registered" policy
that the reserve or full amount re-
quired by law to be held for each life
policy, is in the custody of the In
surance Department for his policy
Fire Insurance.
Under the law ali fire insurance
is required to be placed through Ii
censed resident agents of this state,
and they are forbidden to divide COM
missions with any nonresident even
il an agent or broker. The last Leg
islature amended this law and made it
lawful for Il resident agent to u1vids
commissions to the extent of five per
cent. with a nonresident If he were
licensed by our Insurance Department
and provided for the license of a non
resident as a broker. A bill was also
passed applying to cities or towns hav-
ing 1000 or over inhabitants by the
census of 1900, which was known as
1.-The Fire Waste" bill, and was de-
signed to prevent loss by fire by pro-
viding proper building laws. This law
does not go into effect until July 1st,
1905, and will save much valuable
property to the citizens of the State
and taxable property for our cities
and State, and bring about reduced in
Surance rates.
State Property.
Two bills were passed for the pro-
lection of State property. One pro-
yided for protection against fire and
appropriated different sums for each
State institution to be used only in
providing for the protection of said
State buildings by Prevails, fire-doors,
fire-shutters. fire hose and other ap-
paratus for fighting fires The other
bill provided for the increase of the
insurance on State buildings and
property to about one-half millions
dollars, and appropriated not exceed
ing ten thousand dollars for the pay
ment of the insurance on same. The
insurable value of the State property
is $3.50, 100000, and there has been
carried in insurance on the same only
$S57,737.37.
The Farmers Mutual.
The charter eff the Farmers Mutual
Fire Insurance Association of North
Carolina was amended by the last Leg
islature to provide for the formation
Of a central branch" BY this means
farmers in any county where there are
not enough to form a local branch
can be insured in the central branch
until such a time as the way be open
to establish a local branch in then
county.
Building and Loan Associations.
a new (and the friends of it say
very completely law was enacted reg
ulating the formation and government
of building and loan associations il
this State. The supervision of thes,
associations transferred to the Insur
ance Department.
Bills That Failed to Pass.
Several bills restrictive and vicious
in their character and not for tn,
good of either the citizens of the Stat,
or the insurance companies failed t,
pass, being promptly turned down b,
the legislative committees. Two re
commentators of the COMMISSIONS
were not acted upon. The Leg.
islature failed to provide fol