Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-01-16
AN INSURANCE BILL
Prepared by Representative
AmeS of Massachusetts.
ITS LOCAL APPLICATION
Creates a Bureau Under Department
of Commerce and Labor.
COMMISSIONER ABOLISHED
Some of the Other Provisions in the
Measure Concerning Fire and
Life Insurance.
ITS LOCAL APPLICATION
ABOLISHED

Representative Butler Ames of Massa-
chusetts has finally completed the prepa-
ration of his bill for the federal regulation
Of insurance, of which he informed the
House in his speech Of December 18. Mr.
Ames is one of the kids of the Fifty
ninth congress, but some of the veterans
and old stagers of the House won't hold
1T against him when his bill comes up for
consideration, as it undoubtedly will. 1t
is considered to offer food for thought and
discussion on this important question. Since
he announced that he intended to intro
duce bill to provide for the federal regu-
lation Of insurance Mr.. Ames has been en-
gagged on drafting the provisions Of his
measure, and has had consultations with
Assistant Attorney General Frederick H.
Nash of Massachusetts, and other promi-
nent lawyers and insurance commissioners.
Creates Bureau Of Insurance.
The bill creates a bureau of insurance
in the Department of Commerce and Labor
and abolishes the present commission of
insurance in the District of Columbia 1t
subjects to it's provisions all insurance
companies. foreign and domestic, as con-
diton of transacting any business of insur-
ance within the District of Columbia. In
order to provide for the incorporation of
domestic companies it was found necessary
to incorporate In the bill a new code of
corporation law, similar to that of Massa-
chusetts, as applied to insurance companies
Mr.. Ames and his advisers considering the
District of Columbia code for this purpose
to be notoriously inefficient and defective.
Some of It's Provisions.
The bill provides for the organization
of domestic insurance companies for life
and health, fire and sprinkler, marine.
fidelity, burglary, accident, employers
liability, steam boiler, plate glass, vehi-
Gle, credit and title insurance.; makes
provision for a proper control and super
vision of legitimate insurance, at the
Pame time securing to the pohcyholder
the greatest possible return on his in
vestment, and throwing around him every
possible safeguard; provides that foreign
insurance companies and companies of for
eign countries also will not be authorized
to do business within the District of Co
lunnbia until they, too. have complied with
the provisions of the bill, protecting in
every possible way the policyholder, and
provides as further condition to do bust
ness in the District of Columbia that they
shall conduct their business of insurance in
the several states and territories in con-
fCrmity with the requirements for such
business in the District Of Columbia.
In effect, the bill creates blacklist of all
companies unwilling to throw around the
conduct of their business that protection
of the policyholder which Is demanded by
justice, fairness and mOrally. Inc meas
ure Is intended to serve as a standard for
all state legislation relative to insurance.
Relation to Life Insurance.
Its principal features are its unique pro-
visions relative to life Insurance.
1t limits the investment of capital stock;
prevents life assessment insurance; pre-
vents dividends in tontine periods; pre-
vents child Insurance up to sixteen years
+l,a fnrfait aitt1ra Of nfintv
after two full annual premiums have been
paid; prevents the notorious abuses in
prudential and industrial insurance; pre-
vents deception by agents in the writing
OF Insurance.; causes the advertising Of
the salaries and list of all officials Of an
insurance company; places check on
rates of loaning, and on fees and salaries
OF officials; secures dividends earned to
policyholder in mutual life companies after
the third year of the life of the policy
provides for examination and publicity of
the business of insurance companies. and
prohibits taxation of insurance companies.