Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-04-01

/ shoulo certainly meet the approval OF all
honest legislators and Of the companies.
particularly those referring to the annual
accounting with the policy holder; the re-
quiring that annual statements be more
explicit, and give more detailed informa-
ton OF the company's transactions 10 the
public through the insurance department;
the prohibiting OF the placing OF trust
funds in stock Investments having no ixed
value and not readily convertible; pro-
hibiting company from becoming a NOM
Der OF a syndicate for promoting the
sale OF securities, and the prohibition OF
political contributions and legislative lob
bying. These recommendation undoubt-
edly win be framed into proper laws and,
IL enacted, win be of great benefit and
conserve the best interests Of life insur-
Rnce.
state Supervision of Insurance.
We have hearo much discussion during
the last year as to taking the supervision
Of insurance companies away from the
states and putting It under the control of
| department OF the general government.
1t has been charged that state insur-
ance departments are inefficient; that the
powers given to the commissioner are
sometimes used for personal gain, by the
means of hold-up examinations or the ao-
ceptance OF brides, for the suppression Of
information showing dishonesty or mis-
management, as disclosed in the course Of
his examinations. While 1t il unfortunately
true that dishonest men have occasionally
been elected or appointed as state insur-
ance supervisory such instances are ex-
tremely rare and are not moro frequent
In this than I'm other state offices.
The particular fallacy Of using this arsu-
Il
state supervision. lies in the fact that
should a weak or dishonest official be
selected as federal supervisor, the public
would indeed be without protection; while
with state supervision and the right OF
each state supervisor to examine into the
affairs Of any company transacting BUSH
ness in his state. the Ineficiency or dis
honesty of one department could not long
conceal from the public every act Of dis
honesty or gross mismanagement which
would certainly be brought TO light
by the examination Of the supervisor
Of some other state.
Companies Are Interested.
To one closely observing, it is apparent
that the demand for federal supervision
does not come from those most deeply in
terested, the policy holders, but is a skill
fully planned attempt of certain companies
through the efforts of their paid agents
and attorneys, assisted by the more sub
servient insurance journals, to create a
sentiment In support of this change.
The fact that the bill now pending in
congress providing for federal control OF
insurance was introduced by the president
of one of the largest life insurance com
panies, in his capacity of United States
senator, and has been supported before the
committee by persons employed, either d.
rectly or indirectly by insurance compa-
MES, does not strengthen the sentiment in
favor of national supervision in the minds
of the public generally.
In the New England states, where many
of the oldest and largest life insurance
companies have their homes, the state In
surance departments have been for many
years in the hands of capable, fearless
men. Has one heard during all Of the ex-
element of the past year any breath Of
scandal touching these old companies or
these departments?
We have heard of no such demand from
the people of New England. and very few Of
the insurance officials in that section are
strongly outspoken in favor of national
supervisors. What is said of New Eng
land may also be said OF many Of the more
western state. Had the insurance commits
sioners Of New York understood his
responsibility and been fearless in perform
ing his duty, the irregularities touched
upon in this paper would have been
checked in the beginning and the country
spared the shock Of the unfortunate con-
ditions disclosed in the recent investl-
cations JOHN L. PIERCE,
Lincoln. State Insurance Deputy.