The Lamar register. [volume] (Lamar, Colo.) 1889-1952, 1906-12-19
|INSURANCELAWS
REcoMMENDATioN OF INsuR-
ANcE SUPERINTENDENT
CONDITIONS IN COLORADO
Income from Department Has In
Observation-Disclosures Companies
earred-Governor Should Appoint
Superintendent.

Barred-Governor should Appoint
Superintendent.
Denver-E. e. Rittenhouse, deputy
superintendent OF insurance. has com
pleted his review of the work OF the
department during the past year and
his recommendations in the way Of re-
form Legislation to be presented to the
Legislature at Its coming session.
This mas been submitted to State Audi
tor A. e. Bent, ex-ofiicio superintendent
of insurance, who will incorporate 1t
in his annual report.
A gain of more than $4,000 has ac-
crued to the state from the vigorous
enforcement of the departments nj
charge July 1, 1905. He collected
s6.126 agents license fees which were
in arrears, with an increase of only
T496.57 in the total expenses of the de-
rartment over the previous year. The
1come of the state has also been In
reused $i.072 by further enforcement
III the Law relative to the collection of
tolicitors' 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 It has
so far as possible put stop to tho
practice of unauthorized companies
s nding solicitors to operate in this
state in defiance Of the law
All Colorado companies have been
examined during the past year, with
the exception of one, which will he ex.
cmined after the first of the gear. The
report continues:
The Mountain Mutual Fire Insurance
Company and the Loyal Northwestern
lutual Fire Insurance Company, both
'ocal assessment concerns, were re-.
-uired to go out of business because
their failure to pay fire losses. Both
we're managed with great extraya-
-ance and with no regard to their obli-
rtions. In the case OF the Loyal
Northwestern Mutual Fire Insurance
Company, largely through the efforts
OF the department, the losses were paid
y another company as consideration
or the privilege of reinsuring the out
standing risks
Three companies outside of the state
we're foun1 to be doing an illegal busi-
IS and were forced 70 suspend in
this state.
There are over 10000 people in
Colorado holding policies in life insur
ance companies, AMI as many more are
Insured in fratcrnal orders. These
10000 life policy holders, with their
direct beneficiaries, number over $780,.
ZOO. In addition to this. nearly every
house owner in Colorado carries fire
insurance, and several thousand hold
casualty and other policies II Is,
therefore,. reasonable to say that
ninety per cent. of our peorlc arc III.
rcctly or indirectly interested in main
lining II high standard of efficiency in
The insurance department
''They hove a right I, expect Il, for
they ray the bill. The salaries and
Expenses of the department are paid
Tor by fees collected from the insnr,
'ncc companies. which means that IN
the end tho policy holders pay them,
''he fees collected by the department
last yerr amounted to s3i.6i9.2S. while
the total exrens"S were hut Sl7,O23 IS.
N addition to this. the companies paid
sf43.5i1.93 to the departm crt in taxes
two per cent? oil their s-oss pre-.
miums
''rhc usefulness OF the department
con be greatly enhanced by transfer.
-'rg it from tho Jurisdiction Of the au.
Tor of s'atc to that OK In" governor.
10 auditor is row superintendent OF
'snraace eX-oIlcio- unde: the consti.
ution ne con serve but TWO years, and
IS, ne appolnfs the DEPUTY Slip"rinten-
ont OF insurance. who is HoS the nc
v" head cf the department, the latter
hciai serves but two yerr5. THIS
cans mat NJ scarcely ra3 h.d q
larce 10 .amiliariZe himself with the
my intricate and technical phases OF
s dutics before he must make way
n his successor.
"A number OF our present lnws go7'
aing the work OF the department
ould he revived. The insurance
9nts should he defined, and the lnws
hitting to their licensing should he
de mere clear, and the primary re.
nnsibiIiFy for procuring tho license
'orld he placed upon the solicitor. his
1ilication TO Re approved officially ~
company that proposes to employ
NJ.
The law relating to examinations
Of insurance companies should he re.
vised and an effective penalty provided
FOR its violation. This law shouii also
provide that insurance companies Will
nay the expenses. but IN no case any
ersonal fees to regular cfacers or ON
Tloyes of insurance departments. Any
u