Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-05-17
NEW INSURANCE LAWS
Bills Proposed by Armstrong
Committee Passed.
SOME FEATURES OPPOSED
Two of the Acts Claimed to Be Un-
ca stitutional.
cLAssED AS DIsCRufIEATIHa
Four Companies Required to Publish
Lists Of Pohcyholders, Some Of
Whom VIII Probably Object.
cLAssED AS DIsCRnfHATMG

Record Herald. ~
NEW YORK. May 10, 1905.
All OF the insurance bills proposed by the
Armstrong committee have become laws.
They were put through the New York
legislature under the whip as republican
measures, and no amendments or omissions
were allowed. Several of the important
features were objected to by able and
conscientious lawyers The prediction Ia
freely made that the courts will declare at
least two of the new laws Unconstitutional
because they clearly discriminate between
rival corporations engaged in the same
business Several of the provisions are
believed to be imperative and their de-
fects were pointed out while the bills were
under discussion, but the republican ma
chine was anxious to make as much capt.
tai as possible out OF the Armstrong inves-
tigation and would not permit any doubt or
delay
The whole insurance agitation has drifted
into politics. The democrats are trying to
neutralize the credit that the republicans
are getting by indicting George w. Perkins
for contributing insurance money to the
republican campaign fund and by bring
Ing the whole question OF political con-
tributions before the grand jury. Every
body who knows anything about politics
has long been aware that the big insurance
companies, like all other corporations, paid
political contributions, and nobody ever
considered 1t wrong until the recent inves-
tigation. Now the courts are actually de-
lberating whether 1t is grand larceny
embezzlement or some other kind Of
crime.
Complying With New Laws.
The three big insurance companies are
getting ready as promptly as possible to
comply with the new laws which practi-
cally revise the entire insurance code Of
New York. They make more than 200
changes, some Of which are important and
others of little consequence. The ten
dency of the amendments generally Is to
concentrate responsibility, and fasten 1t
upon the principal officials and commit
tees of the big companies; to compel
greater publicity as to their financial con-
dition and transactions, to limit the scope
of writing insurance, to restrict invest
ments, to forbid the use Of the money of
pohcy-holders for private gain. to promote
economy and to head Off graft as much as
possible.
The principal and most important
amendments are follows:
Real property cannot be acquired. dis
posed Of or exchanged by any domestic
or foreign company within New York state
without the approval Of the superintend-
ent of insurance.
Omcers and directors must not be Pc
cuniarily interested in any transaction.
The condition Of every company must be
examined into at least once in three years
or more frequently upon formal applica-
ton of stockholder, q policy-holder or a
creditor.
Stock companies may permit policy
holders to vote for directors.
After January 1, 1907 every policy
must contain all the provisions Of the con-
tract.
Companies are responsible for the repre-
sensations Of their agents and are forbid
den under penalty to issue circulars or other
statements misrepresenting the terms or
value Of any policy.
No deferred dividend policies can be is-
sued after December 81. 1906 DIVIDENDS
must be paid annually in cash or in the re-
| duction Of premiums or in the purchase OF
| paid-up additions, or they may be left with
! the company to accumulate interest For
| eign companies must observe this law.
The legal minimum value Of all policies
| Is fixed by law.
The minimum of reserves is fixed also.
| Surrender values are fixed definitely.
Stock companies may be mutualized by
! consent of majority Of the stockholders,
| majority of the policy holders and the APP
| prevail Of the superintendent.
New business is limited in accordance
| with the amount of insurance now in force
| Companies with three hundred millions OF
| insurance in force cannot issue more than
% per cent of that amount OF new insur-
| ance in any year; up to six hundred millions
20 per cent, and a thousand millions, 10 per
cent.
Expenses for getting new business are
limited; salaries in excess of 5000 year
must be approved by the board of directors.
Vouchers must be obtained and kept on
file for all disbursements of 500 and up
ward.
No company is allowed to invest its as
sets in stocks or loan money upon stocks,
and all stocks now held must be sold
within five years.
Underwriting loans and other speculatons
are forbidden.
Standard Forms Of Policies.
-Four standard forms of policies are pro-
vided. and those only can be used by any
company-ordinary life, limited payment