The Springfield herald., 1906-12-21
'INSURANCELAWS
REcoMMENoATio OF iNsUR.
ANcE SUPERINTENDENT.
CONDITIONS IN COLORADO
Income from Department Has In
ereased-Unauthorized Companies
earred-Governor Should Appoint
Superintendent.

earred-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 recommendation In the way of re-
form legislation 10 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 af-
fairs since Mr. Rittenhouse assumed
charge July !, 1905. He collected
S6,126 agents license fees which were
in arrears, with an increase of only
S496.57 in the total expenses of the de-
partment over the previous year. The
income of the state has also been in
creased $4.072 by further enforcement
bf the Law relative to the collection OF
Folicitors' fees, etc. Regarding the un-
authorized soliciting of Insurance in
Colorado the report says:
THE department can not prevent I'M
authorized companies from soliciting
insurance through the mails, but it has
SO far as possible put a stop to the
sending 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.
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.
quired to so out of business because
Of their failure to pay fire losses. Both
were managed with great extraya
sance and with no regard. to their obli
cations. In the case of the Loyal
Northwestern Mutual Fire Insurance
Company, largely through the efforts
of the de partment, the losses We're paid
by another company as consideration
for the privilege of reinsuring the out
standing risks
Three companies outside of the state
were found TO be doing an illegal busl-
ness and We're forced to suspend in
this state.
There are over 10000 people in
Colorado holding policies in life insur-
ance companies. and as many more are
insured in fratcrnal orders. These
10000 life policy holders, with their
direct beneiiciaries, number over 800.
900. In addition TO this, nearly every
house owner in Colorado carries fire
insurance, and several thousand hold
casualty and other policies 1t is,
therefore, reasonable to say that
ninety per cent of our people are Iii.
rcctly or indirectly interested in main.
tairing Il high standard OF efficiency In
the insurance department.
''They have a right t> expect it, Tor
they pay the bill. The salaries and
expenses of the department are paid
for by fees collected from the insur.
ance companies. which means that in
the end tho policy holders pay them.
The fees collected by the department
last yenr amounted to S34,6i9.2S, while
the total expenses were hut S17,023.4S.
In addition to this, the companies paid
si4S.5i1.93 to the department in taxes
(two per cent? OH their gross pre-.
miums.
1.-THE usefulness of the department
can be greatly enhanced by transfer
ring it from the jurisdiction of the au.
".or # statc to tl'a,: ., az Nor
T ne ae22::ttcc. ae22t::;tc. Is now superintendent of
insurance ex-oGicio. Under the consti-
ution he can serve but Two years, and
rs he appoints the deputy snperinten-
dent of Insurance, who Is HOW the nc.
tive head OF the department, the latter
! ficial serves but two years. This
means that he scarcely has had 4
hance to ramiliarize himself with the
any intricate aud technical phases OF
Is duties before he must make way
>r his successor.
IA number of our present laws go7-
ming the work Of the department
| 'iould he revised. The insurance
| cents should be defined, and the laws
| dating to their licensing should be
,ade mere clear. and the primary rc-
| 1onsibiliry for procuring the license
| hould he placed upon the solicitor, his
duplication 10 be approved officially By
/, ',e company that proposes to employ
him
THE law relating to examinations
of insurance companies should be re-
vised and an effective penalty provided
for its violation. This law should also
provide that insurance companies VIII
pay the expenses, but in no case any
NerSOnal ices to regular Cl..'tTS UT till-
rloyes of insurance departments. Any
ompany or agent refusing to furnish
information Or to permit OF an !ns2"c'
ion of books by the department shoul'i
be deprived of their license to do bus!-
ness in Colorado.
"The assessment accident insurance
laws should be abc'ished. hut II it Ia
not deemed wise to do SO, they should
certainly be SO amended as to cliri-
nate the present very questionable fea-
.urew connected with this branch oi
the business in this state.
"a mutual fire insurance law prop
erly safeguarding the interests of tho
policy holder is badly needed. The op
cr:.tion uf the present incomplete riu
;ual fire Insurance section has opened
L field for s;raft, caused loss to many
policy holders and filled the pockets ol
number Of cnterprisng promoters.
stock flre insurance corporations
operating only in Colorado should be
permitted to organize with capita
of s50,000, instead of 100000, as al
present.
Insurance solicitors known as broli
crs shnu d be required to pay license
fec in Colorado, as they are in mum
ber Of other states. AS it is now, the
regular agent must have a license
while his competitors the brokers, are
III M