The Ordway new era., 1906-12-21
INSURlNCfLAWS
RECOMMENDATIONS or lNouR
AMcG SUPERINTENDENT.
CONDITIONS IN COLORADO

/
superintendent Of insurance. has COM
pleted his review OF the work Of the
department during the past year and
his recommendation In the way Of re-
form legislation to be presented to the
Legislature at its coming session.
This nas been submitted to State Audi.
tor A. T.. Bent. ex-ofiicio superintendent
Of insurance, who will incorporate II
| In his annual report.
A gain OF more than $4,000 has nc.
crued to the state from the vigorous
enforcement OF the departments nj
fairs since Mr.. Rittenhouse assumed
charge July ]. 1905. He collected
36.126 agents license fees which were
In arrears. with an increase OF only
&496.57 In the total expenses Of the de-
partment over the previous year. Tho
income OF the state has also been in.
creased S&.072 by further enforcement
Of the Law relative to the collection Of
solicitors fees. etc. Regarding the un.
authorized soliciting OF insurance in
Colorado the report says:
"The department can not prevent un.
authorized companies from soliciting
insurance through the mails. but II has
80 far as possible put n stop to tho
practice OF unauthorized companies
sending solicitors to operate In this
state In defiance Of the law.
All Colorado companies have been
examined during the pact year, with
the exception OF one. which will be ex
amined after the first Of the year. The
report continues:
The Mountain Mutual Fire Insurance
Company and the Loyal-Northwestern
Mutual Fire Insurance Company. both
local assessment concerns. were re
CURED to go out OF business because
Of their failure to pay fre losses Both
were managed with great extrava
gance aud with no regard to their obli
cations. In the case Of the Loyal
Northwestern Mutual Fire Insurance
Company. largely through the efforts
OF the department.. the losses were paid
by another company as 4 consideration
for the privilege OF reinsuring the out
standing rtsks.'
Three companies outside of the state
were found to be doing an illegal bust
ness and were forced to suspend IN
this state.
There arc over 10000 people In
Colorado holding policies in life iusur
ance companies. and as many more arc
insured In fratcrnnl orders. These
100000 life policy holders. with their
direct beneficiaries. number over 320.
900. In addition to this. nearly every
house owner In Colorado carries nre
insurance. and several thousand hold
casualty and other policies. II 10.
therefore. reasonable to say that
ninety per cent. Of our people arc ji
rectly or Indirectly Interested In main.
taining high standard OF efficiency In
the insurance department.
They have right 10 expect II, for
they pay the bill. The salaries and
expenses OF the department are paid
for by fees collected from tho insur.
ance companies, which means that In
the end the policy holders pay them
The fees collected by the department
last year amounted to $34.649 2s. while
the total expenses were but 3i7.O234s.
In addition to this. the companies paid
S143.5i193 to the department In taxes
1.-TWO per cent? on their gross pre-
miums.
"The usefulness Of the department
can be greatly enhanced by transfer
ring 1t from the Jurisdiction of the au.
ditor OF state to that OF tho governor.
The auditor 10 now superintendent Of
tuition he can serve but two years, and
NJ he appoints the deputy superinten.
dent Of insurance. who IL now the &C.
tive head OF the department. the latter
oMcial serves but two years. This
means that he scarcely has had q
chance to famillarixe himself with tho
many Intricate and technical phases Of
his duties before he must make way
Tor his SUCCESSOR
"A number OF our present laws gov.
erning the work Of the department
should be revised. The insurance
agents should be defined. and the laws
relating to their licensing should be
made more clear. and the primary re.
sponaibility for procuring the license
should be placed upon the solicitor, his
application to be approved ofiicially BY
the company that proposes 10 employ
him.
THE law relating to examinations
OF insurance companies should be re-
vised and m effective penalty provided
for its violation. This law should also
provide that insurance companies win
pay the eapenscs. but in NO case any
personal fees to regular of1cers or EN-.
ployes OF insurance departments. Any
company or agent refusing to furnish
Information or to permit Of an inspcc.
tion Of books by the department should
be deprived Of their license to do bust.
ness In Colorado.
THE assessment accident insurance
laws should be abolished. hut n IL ID
not deemed wiso to do 20. they should
certainly bO 70 amended as to elltni.
nate the present very questionable fem.
lures connected with this branch n
tho business in this state.
"A mutual hre insurance Law prop
eriy safeguarding the interests Of the
policy holder II badly needed. The op.
lerAtion " the present incomplete mn,
.uei nre insurance section has opened
neid Tor gran. caussd loss to insny
policy holders and filled the pockets n
10 number a ontOrnrininrr ,,rI,r,c1e~.