The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-03-30
One INSURANCE BILL PASSED.
ASSEMBLY GOVERNS ~ MEASURE
REMOVING TRUSTEES.

mittee bill legislating out Of office the trus-
tees OF mutual life insurance companies
passed the Assembly to-day and now goes
back to the Senate, from where 1t VIII DO
sent to the Governor for his action.
When the bill was being considered AS
semblyman La Fetra said he had purposed
to offer an amendment that would exclude
any OF the present trustees from being
eligible to election but il the oommlttee
was satisfied with the bill he would deier
to its Judgment. Not a vote in opposition
was recorded,
Assemblymen Tompkin ms and Shanahan
catechised Assemblyman Rogers, VINO nao
charge of the bill in the W. house, re-
Earding the effect Of the bill. Mr.. Rogers
said that the bill would ~legislate out OF ONCE
the trustees of the New York Life, the
| Mutual Life, the Security Mutual OF Blng-
hamton and the Mutual Reserve Life. In
answer to a question concerning the Equl-
table Mr.. Rogers said that that company
was taken care of in another bill.
The bill passed to-day, although it will,
il signed by the Governor, legislate out
of Office all the trustees Of the mutual
companies, will not prevent them from
being returned TO office il the policyholders
desire thcm. The bill invalidates all exist
ing proxies. The mama cments OF the
companies may collect proxies, but the
period of the campaign for them, az well as
for any policyholders' organization rs
restricted to the two months Immediately
preceding the November 10 election. ANY
proxy obtained prior to September 10 Is
invalid. 1t is the scheme Of the Armstrong
committee bills to require the manage
ments of the companies not only to file
with the State Superintendent of Insurance
lists of the policyholders, but also TO make
public their candidates four months prior
to the election.
Senator Armstrong reached Albany at
4 O'Clock this afterno on where, for over a
week, the work of finally revising the insur-
ance bills has been going on. With Senator
Armstrong we're the investigating com,
mittee's counsel, Charles +, Hughes, ana
James McKeon: the committees actuary'
Miles Dawson, and its statistician. Marvin
Scudder.
Mr.. Hughes had the revised Insurance
bills with him. Shortly before 8 O'Clock
the members of the Armstrong committee
and of tho standing Committees onlnsurahce
in the Senate and the Asse mbly,, with the
Armstrong committees connse' ana eN-
| perts, met in the Finance Committees
| room in executive session for the purpose
of having the full committees act on the
bills, 80 that they may be reported iavor-
ably in each house Tomorrow. Az o cloch
a dinner recess was taken nntli 9, when
Senator Armstrong announced tIHt tue
committee expected to complete Its WORK
tonight, even il il took until after md
night.
Late tonight the conference over the
bills was concluded, and Senator Armstrong
! announced the changes that had been MADE
in the bills. The bills relative to lobbying,
political contributors, perjury, iatse
entries in books. rebates and the acqulr-
ing of real property are permitted TO stand
with the exception of n few formal amend
ments.
In fact all Of tie eight bills at first intro
duced by the committee, with the excep-
ton of the general amendments TO the
insurance law. are reported out again by
the committee with nothing but formal
charges. The bills amending the ihsur-
ance law generally and providing. Tor
standard forms Of policies and pertaining
to cooperative and assessment insurance
companies nave been consolidated into one
bill and the changes are largely formal.
One change of importance made ls that the
law shall be made applicable only 10 40
mestic insurance corporations relative 10
expenses for the procurement OF new busl-
ness, but a foreign company now dong
business within the limits Of expense re-
ouired of a domestic corporation shall not
be permitted to do business within TINS
State.
r Changes nave Deen mdut III StCllOu %
regarding the contingency reserve iund.
The scale for that is reduced down TO D per
cent. to a mpan having SIS 900 900 in
assets. The scale originally mad been
graded down to 2 per cent: Now every
company having S75 900 600 in assets may
maintain a reserve of 5perc cent. The Superin-
tendant of Insurance is empowered to ALLOW
companies having larger assets to carry
larger reserves in any one year in order TO
be able to meet any unexpected deprecia-
49,, 10, tIa xrnltn of tha SnpIT1tlnS nnIn.
The section relative to loadings on pre-
miums has been stricken out.
TIL much mooted section es, in regard TO
the agents commissions, has been amended
materially, 80 that the agents commissions
will be considerably larger than at first
provided. The section has been modified
go that IL now provides that a company's
first years business for expenses must not
exceed the commissions to agents; salaries
paid excessively for the procurement OF new
business, medical and inspectors fees and
advances to agents shall not exceed the
loanings and margins originally provided.
This, Senator Armstrong explains, will
| allow about so per cent. to be expended OF
the first years premium for new business
on an ordinary life policy. Nine renewals
at ~ per cent. are 10 be allowed, with 2H
per 3nt additional the tenth year. for
collections. The companies commute these
renewal payments within three years, not
more than two-ffths of the communication
to be paid in any one year.
In regard to the investments of the com
panies the committee has modified the
section by permitting the companies hold
ing collateral trust bonds to hold them.
1t Is explained that the companies 81 now
hold between SIS 900, 900 and sl0O, 0O0, 600
of these bonds. However, the provision
in regard to ~disposing Of stocks is retained.
1t is provided THAI the standard form OF
policy shall go into operation on January 1
next, but prior to October l the Safe Super
intendent Of Insurance may modify these
forms after hearings accorded to repre-
sentatives of the insurance companies,
though such notifications are not to con-
hict with any provision OF the Amended
Insurance law.
Senator Armstrong explained that this
would enable the Superintendent Of In
surance TO correct anything in this regard
that the committee may have overlooked.
1t was stated that the bills would be re-
ported favorably in each house this morning,
and the Indications are that they will all
/ pass the Legislature and reach Gov Higgins
before the middle of April,
MING IIY ETTE AVN EDtA-x-IC