Los Angeles herald., 1906-01-15
FOR REGULATION
OF INSURANCE
SEN. DRYDEN WILL PRESENT
BILL TODAY
Keynote Of Bill Is Publicity, with
Provision for Detection Of Wrona-
doing and Its Pun
ishment
BY Associated Press.

WASHlNGTON, Jan. 14.-SenatOl
Dryden has revised his bill contem-
plating government control of insur-
ance and will reintroduce it in the
senate tomorrow. lie has followed
very closely the investigation being
conducted by the New York Legislative
committee, and this has aided him in
Perfecting his measure. He expresses
the belief that IL will correct practic-
ally all of the insurance evils exposed
by the New York inquiry.
Publicity is the keynote of the bill,
and coupled with this are safeguards
for the detection of wrongdoing and
the punishment OF those so offending.
1t defines policies or insurance con-
tracts as Observation-Disclosures of COM
merce and provides for the regulation
of the business through the medium
of a comptroller of insurance and
along the lines similar to the control
exercised over national banks. The
author says he believes this will go
far toward meeting objections of those
who have questioned the constitutional
possibilities of federal regulation of
insurance. The senator says the bill
has the Endorsement of the president
administration officials, eminent con-
stitutional lawyers in and out of con-
gress and Others who are familiar with
its general features as coming nearer
to meeting the demands of the situa-
tion than any of the other numerous
pending measures.
Senator Dryden has long been
champion of federal regulations. He
said today:
1.-THE bill contains some fifty sepa
rate provisions, of which the first thir-
teen relate to the organization of the
proposed bureau of insurance in the
department of commerce and labor.
The bureau is to be in charge of a
comptroller of insurance, who is re-
quired to furnish a bond of 100000.
Conforms to Banking Act
''In nearly all essentials the bill, as
far as possible, conforms to the organic
acts esta blishing other departments OF
the federal government, but in par
ticular the national bank act. There
is to be a deputy comptroller, who is
also to be a bonded officer, and an actu-
ary, who is required to be a person of
recognized professional ability and ex-
perience.
"The general supervision and control
of the bureau is under the direction of
the, secretary of commerce and labor,
and all fees or other moneys collected
are required to be paid into the treas
ury. The comptroller must make an
annual report to congress. including the
details of all examinations made Of
companies during the year, together
with a complete statement of the re-
ceipts and disbursements of the bureau.
"The provisions of the act apply toI
all corporations, associations or part
nerships engagedLin interstate insurance
business or who make or deliver in |
surance contracts outside of the state
of incorporation or origin or authority, |
but have no application to fraternal
societies or organizations carried on for
the sole benefit of members and notd
for profit. Such associations or So
cieties may voluntarily take advantage
of the act and after complying with |
its provisions become duly authorized
by the comptroller to transact inter-
state insurance.
To Establish Rules and Fees
"The comptroller is required to es-
tablish rules and regulations and rea-
sonable fees for conducting the bust |
ness of insurance including annual and
other reports to be made by companies. |
The penalty for failure to make or
any report or statement of
facts required is 500 for each day of
Qeldy. L ne COTlplTOller Is dlSO TeQulTeu
to have a conservative valuation made |
of the business of life insurance COM |
panies, or determine the reinsurance
reserve of other companies upon ap- |
proved methods and tables by such a
standard of interest as may in his judg |
ment and discretion best serve the pur-
pose to determine and esta blish the true |
financial conditions and attendant loans
Of companies
Authority and power to inquire into |
the details and facts of the manage |
ment of all corporations engaged in |
insurance is given to the
and he may have the COM |
panies examined by special examiners
whenever necessary or eXpedient. To
this end ne may invoke the aid of any
court of the United States to require
the attendance and testimony of wit
nesses and the production of books, |
papers and documents. Failure to obey
such order of the court may be pun
ished as contempt thereof. 1t is also
provided that the companies may be in
vestigated by the comptroller upon the |