The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-01-16
TO PROTECT RIGHTS
OF POL|CY-HOLDERS
Bureau of Insurance Is the
Latest Scheme That Is
Proposed.
SENATOR DRYDEN HAS A
BILL PROVIDING THEREFOR
Publicity Is the Keynote of the
Measure, Coupled With
Other Safeguards.

WASHINGTON, Jan. Ex-senator Dry
den has revised his bin contemplating
Government control or insurance. and
Will TcIntroduce II in the Senate tomor-
row, lie has followed very closely tho
Investigation being conducted by the New
York Legislative committee, and this has
aided him in pcrfectinG his measure, un-
I'll now he Expresses the belief that 1t
will correct practically all OF the insur-
anco OWLS exposed by the New York In
qulry.
Publicity the Keynote.
Publicity is the keynote Of the bill. and
coupled with this are safeguards for the
detection or wrongdoing and the punish
mcnt OF those so offending. II defines
policies or insurance contracts as In
strumentalities OF commerce and provides
for tho 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 au-
thor SAYS he believes this will go far
toward meeting objections Of those who
have questioned the constitutional pos
sibiitics OF Federal regulation of inSur-
aucc.
The Senator says the biz has the in
dorsement OF the president, admlnlstra-
tlon officials. eminent constitutional law
ycrS In and out OF Congress and othors
who are familiar with It's general features
as coming nearer to meeting the demands
OF inc SITUATION tnan uny OF lnc OtneT
numerous pending measures. Senator
Dryden has long been a champion of Fed
ersl regulation
Senator Dryden said today; The bill
contains some nifty separate provisions,
Of which the first thirteen relate TO the
organization of the proposed bureau of
insurance in the Department OF Com
merca and Labor. The bureau is TO be In
charge of a comptroller of insurance. who
is required to furnish a bond OF 100000
Similar to National Bank Law.
In nearly all essentials the bill az
far as possible conforms TO the organic
acts establishing other departments OF the
Federal Government, but In particular
tho National bank act. There Is to be
a deputy comptroller, who s also to be
a bonded officer, and an actuary. who ia
required to be a person OF recognized pro
fesSlonal ability and experience. The
general supervision and control OF the
bureau is under tho direction OF the Sec
retsry OF Commerce and Labor, and all
quired TO be paid into the Treasury. The
comptroller must make an annual report
to Congress, including the details OF all
examinations made of companies during
tho year, together with complete state
ment or the receipts and disbursements of
the bureau.
Fraternal Companies Omitted.
THE provisions of the act apply TO all
corporations. associations OF partnerships
engaged in interstate insurance business
OF VINO mako ana uellNer insurance con-
tracts outside OF the State of incorpora-
tion or origin or authority, but have no
application to fraternsl societies or or
ganlzationS carried on for the sole benefit
OF members and not for profit Such as
sociatiOns or societies may voluntarily
take advantage OF tho act and, and after
complying with all Its provisions, become
duly authorized by the comptroller TO
transact Interstate insurance.
Must Make Reports.
lish rules and regulations and reasonable
fees for conducting the business OF In
surancc. Including annual and other re-
ports To be made by companies. Tho PEN
report or statement OF facts required is
500 for each day OF delay, The comptrol-
Ter is also required to have a conserya-
tive valuation made OF the business OF
for reinsurance reserve of other com
panles upon approved methods and tables
and by such standard Of interest as
may In his judgment and discretion best
serve the purpose TO determine and estab-
lish the true financial conditions and at
tendant loans OF companies.
May Inquire Into Details.
Authority and power to inquire into
the details and facts OF the management
OF all corporations engaged in Interstate
Insurance is given to the comptroller and
he may have the companies examined by
special examiners whenever necessary or
expedient To this end he may invoke
the aid OF any court OF the United States
to require the attendance and testimony
OF witnesses and tho production of books.
papers and documents Failure to obey
such order of the court may be punished
as a contempt thereof 1t Is also pro-
yided that companies may be inVestigat-
cd by the comptroller upon the complaint
OF any State Commissioner OF Insurance.
Must Pay for Examination.
Tho actual and reasonable expense OF
every examination OF special investlga-
ton OF affairs OF an insurance corpora
tion engaged In interstate insurance must
be paid by the corporation so examined
All charges and fees for making such
examinations, however, must be present
ed In the form OF an itemized bill. ap-
proved by the comptroller OF insurance,
and the amount thereof muet be paid Into
the treasury OF tho United States. Cor
porations transacting interstate OF for
eign insurance are specifically exempted
from making any other or separate state
mcnts reports. nor held to be subject
to any visitorial powers of examination
by the comptroller OF insurance. or by
the proper authorities OF the State OF in
corporation or origin.
Must Make Deposits.
Corporations engaged in the business
OF insurance in more than one State must |
file copy of their charter, or other |
documents of local authority, and annual |
ly publish list OF their stockholders or |
deposit Of $4,000, either with the Com |
OF Insurance with tho proper |
official Of the State of incorporation or |
origin.