The San Francisco call., 1906-04-18
PRESIDENT ACTS
On INSURANCE
Sends Special Message to
Congress Asking for a
Model Law for District

WASHINGTON, April I7.-President
the following message relating TO insur-
ance legislation:
To the Senate and House OF Representatives:
l herewith transmit the report and recommend
ations, with accompanying papers. Of the IN
surance convention which in February
last in Chicago. The convention was called
because Of the extraordinary disclosures of
wrongful insurance methods recently made by
the Armstrong legislative committee of the
State OF New York, the suggestion that it
should be called coming TO ME originally from
Governor John a. Johnson of Minnesota.
through Commissioner of Insurance Thomas D.
O Bren of that State.
The convention consisted of about 100 Gov
ernors, Attorneys General and Commissioners
Of Insurance or the States and Territories of
the Union The convention was seeking to
cohpHSn unlloriIl'-- OF insurance legislation
throughout the States and Territories, and as
a prime step toward this purpose decided to
endesVor TO secure the enactment by Congress
OF proper insurance code for the District of
Columbia, which might a model fer
Before adjourning the convention appointed a
committee of three Attorneys General and
twelve Commissioners OF Insurance of the vari-
Congress a bill which should embody the
features suggested by the conventinn The
committee recently met in Chicago and in
thorough and painstaking fashion sought to
prepare a bill which shouio De at protec-
insurance companies and which should pre-
vent the graver evils and abuses of the bust
and at the same time forsstall any wild
drs site Legislation which would be more
harmful than beneficial.
The proposed bill is discussed at length in
the accompanying letter oy superintendent
Thomas z. Drake OF the department of fnslr-
ance in the District of Columbia.
l very earnestly hope that the Congress at
the earliest opportunity will enact this bill
into law. with such changes as Its wisdom
may dictate. l have no expert familiarity with
the business but / have entire faith in the
right judgment and single minded purpose of
the insurance convention which met in Chicago
and of the committee of that convention which
formulated the measure herein advocated. We
are net to be pardoned If we fan TO take
every s+er in our no1Fer 4o preveot tba ,,es.st
bility Of the repetition ef such scandals as
those that have occurred in connection with
the insurance business as disclosed by the
THEODORE ROOSEVELT.
The White House ADril II, 1906.
The bill recommended provides for
the establishment of an insurance bu-
reau in the Department of Commerce
and Labor and for the appointment of
a Commissioner, who shall have no Of
fetal connection with any Insurance.
company or who shall not be
interested in the business of any com.
pany except as a policy holder. The
Commissioner is required at least once
in three years to examine all companies
doing business in the District of CO.
lumbia. Forms are prescribed for the
issuance of annual statements, and the
Commissioner is authorized to demand
other information from the companies
If he believes 1t necessary.
If, upon examination, the Commits
sioner is of the opinion that any do
nestle insurance company is insolvent
or has exceeded its powers, or is in any
manner transacting business contrary
to the provisions of this act, the bill
provides that the Commissioner shall
lay the facts before the Attorney Cen
eral, who may apply to the Supreme
Court OF the district for an Injunction
restraining its further business
minimum capital stock of $4,000
is proposed for accident insurance.
100000 for plate-glass and elevator in
surance and 100000 for all other com
panies. The bill limits the investment
OF capital stock. Companies may also
be organized On a preliminary stock
plan.
Directors are made liable for anv IL
legal investments and companies are
not permitted to do both a participating
and non participating business.
The bill contains plan whereby all
policy holders shall be enabled to par
ticipate through proxies in the election
OF directors at the annual meetings.
The salaries OF all officers and agents
over $4,000 a year must be authorized bv
vote of the hoard of directors of the
insurance corporation. Pensions can
not be voted TO a member of the fam
lily of any officer after his death, and
Of over Si00 require
itemized vouchers.
Standard forms of policies are pre-
scribed. policy cannot be forfeited
after the payment of two full annual
premiums.