New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-02-23
PROPOSED INSURANCE LAWS.
ABSTRACT OF THE MEASURE INTRODUCED IN THE
NEUTRALITY-SUSPICIOUS. TO SIZE
GUARD POLICYHOLDERS

80 prohibition applies now only TO the State Su-
1rtendent Of Insurance and his deputy. All en-
20 Of the department are prohibited from ae-
P.-,inr directly indirectly any gift. credit or
- consideration from an insurance corporation.
o. o. -esl property shall be acquired by any life
,-anoe company for its Office building and for
& convenient accommodation OF the transaction
a., business or under Section IA of the general
.-no-stion law. except upon the approval OF the
80 ". superintendent OF Insurance No real prop
-. shall be disposed OF exchanged for other
u-operty unless the acquisition Of the latter
s,u be requisite for the accommodation OF the
u-.ostion in the transaction Of its business and
80 be approved by the Superintendent Of Insur-
snOs
=. law relative 10 the Limitation Of risks shall
-, snplv 20 life insurance corporations. This sec
80, rroyides that an insurance company shall not
,oss itself 10 any loss any one risk or hazard
o. an amount exceeding 10 per cent OF its capital
and surplus
IN. provisions OF the so-caIled retaliatory sec
"a, Of the insurance law are applied TO other
s-,,,s as well as TO the foreign countries As that
.,cton now exists the Superintendent of Insurance
rsy exclude from this State companies organized
d foreign countries which discriminate against
N.v-York State companies. The provision is ex-
,suded so 10 apply TO insurance companies OF
other States well
Directors and officers of insurance corpora
ZION are prohibited from receiving money or valua-
HE considerations for procuring aiding any
rrrchsse by or sale 10 such corporation Of any
property or any loan from such corporation" and
az. further prohibited from being ''pecuniarily in
,,-ested either as principal coprincipal. agent
beneficiary II any such purchase sale or loan" A
violation OF this section is made nisdemeanor.
hit II IS stipulated that II shall not prevent life
Insurance corporation from making loan upon a
policy held therein by the borrower if he does not
exceed the value thereof
PROVISIONS FOR EXAMINATIONS.
The State Superintendent OF Insurance IS direct
AZ 70 examine into the affairs OF every insurance
oorporation doing business in this State at least
onne IN three years and he may examine any such
corporation rs often as he may deem expedient.
Tse examiners must not be interested IN any In
surance corporation and the examination may in
clude 'the officers and agents Of such corporations
sud al persons deemed TO have material inforrna-
ton regarding the cornpany's property or busi-
ness" The production OF books and papers deemed
relative 70 the examination may be ordered.
The privilege now enjoyed by the stockholder or
creditor OF FL insurance company 10 require the
superintendent upon sworn complaint 10 invesu-
rate the company Is extended TO a polcyholder.
The Superintendent Of Insurance is given discre-
ion however, 20 determine from the facts pre-
sented whether the examination is advisable. Tho
section OF the present law which prohibits such ex-
animation within year OF the time OF q regular
examination by the department is eliminated. The
section limiting the right OF a stockholder or cred
tor 10 commence an action 70 dissolve e domestic
insurance company IS also eliminated Under the
present law he must obtain either the consent Of
the directors OF the Superintendent OF Insuran
Upon the reincorporation or upon the amend
nent OF the charter OF any life insurance corpora
ron having e capital stock n accordance with the
provisions OF this section. IL may by vote OF q
majority OF its directors confer upon 3ts policy
holders upon such policyholders as may have
prescribed amount OF insurance upon their lives
the right 70 vote for al or eny less number of
the directors IN such manner not inconsistent with
any provision OF this statute may be authorized
BY vote OF the stockholders representing least
s majority OF the capital stock e meeting OF
stockholders called for that purpose. Section 80
OF the stock corporation law shall not apply TO
such corporation. This section shall not apply
10 corporations organized under or subject TO Ar
uce Of the insurance law as well as to insUr-
snce corporations organized under special charters
OF Article OF the Insurance law"
The provisions OF the law making e penalty OF
So for each violation unless different sum is
spechcially provided is eliminated. The bill pro-
Ndes that each violation. except where il is spe-
Chcsuy constituted & felony, shall be a mis-
osmeanoE. Il addition to any penalty otherwise
prescribed
Section IS Of the Insurance law. which requires
spohcyhoder 10 obtain the consent Of the Attorney
General before beginning an action 10 compel the
Officers OF an insurance company 10 render
accounting or their trust. IS repealed.
i is provided that every policy OF insurance
Issued OF delivered within the STATE on after
January J. 1871. by any life insurance corporation
doing business within the State shall contain the
entire contract between the parties, and nothing
AhsL be Incorporated therein by reference to any
constitution. bylaws rules, application other
writings unless the same Endorsed upon or at
taeaed 10 & policy when Issued; and all statements
purporrng 10 be made by the insured shall in the
absence Of fraud be deemed representations and
not warsutees. ANY waiver OF the provisions OF
this section snail be void"
SOME PROHIBITED PRACTICES
The practice OF life insurance companies specify
Ing in the application for policy that the agent
70 whom the same is made is the agent Of the per-
son insured is prohibited. Life insurance com
panes and their officers and agents are prohibited
rom issuing and circulating ANY estimate, Nus
uaron circular or statement Of any sort misrepre-
senting the terms OF any policy issued by 1t or
the benefits or advantages promised thereby or the
DIVIDENDS OF shares Of surplus 10 be received ihere-
Or" or 20 Inlsrepresent the true nature OF any
policy. a violation OF this section Is mace a mis-
oerneanor
mutual company. without capital stock, may De
organized for the purposes, either separately or
taken together, specified in Subdivisions and OF
Section 70 Of the Insurance law These SUBDIVISIONS
provide first. for insurance on the lives ana heallh
e. persons and. second, against INJURY, olsaDie-
neat or death from travelling general accidents
or against disablement resulting from Sickness
Corporations other than a mutual corporation may
incorporate for other purposes designated In the
section. The Superintendent OF Insurance is given
additional authority TO safeguard the public inter
ests n the formation OF insurance corporations
Rne il is provided that 81 the corporation is stock
company the capital must be fully paid in in cash
or, If 4 mutual corporation. at least so persons
must have subscribed IN the aggregate for at least
10000 q Insurance on their lives. and shall have
sseh paid in full annual premium upon the in
sofsnce before such company is permitted 10
transact business. The state superintendent OF In
sorance. ana nor the State Departnent OF Insur-