Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-14
NEW INSURANCE Law
The Commissioners to Give
Hearing Wednesday Next.
AN AMENDMENT PROPOSED
Report on Proceedings of Recent Con-
vention in Chicago.
DRAFT OF BILL SUBMITTED
Change in Section $50 Of the Code,
Which Covers Assessment
Life Insurance.

The Commissioners today set apart next
Wednesday at II o'clock for public hear
ing on proposed amendment to the Dis
trict insurance law, which was prepared by
Superintendent Drake of the insurance de-
partment. and submitted to them yesterday
afternoon. With the drafted amendment
Mr.. Drake also forwarded to the Commits
sioners his report on the proceedings OF
the insurance convention, which was held
in Chicago February 1 and q
The result of the conference. he said.
was not altogether what was desired-the
formation of a bill to be submitted to
Congress-but he declared that this will
come later. The program committee at
the conference submitted twelve reforma-
tory measures, and of these the following
five were adopted and a committee ap-
pointed to draft them into the proper
form of bill: Deferred dividends to
he prohibited" Representative form of
government in mutual companies to be
adopted Publicity of management
through annual statements" Investments
to be restricted STANDARD forms Of
policies"
present 1t at the annual meeting of the
rational convention of insurance COM
missioners, which is to meet in this city
| next September. This committee will also
consider the report of the legislative in
surance committee of New York, and the
code prepared by that committee for that
state. and it will further endeavor to for
mulate a uniform bill for the District Of
Columbia. This work, Superintendent Drake
adds. will probably be taken up imme-
diately after the report is made by the
Armstrong committee to the New York
legislature.
Provisions Of the Bill.
The draft of bill prepared by Mr. Drake
provides for an amendment to the code OF
law Of the District, and it Is designed to
more fully control the smaller class of In
surance companies doing business in the
District-the companies which do most of
their business with the poor and ignorant
classes of people.
In brief it provides for an amendment to
section Go3, of the code which covers as
SesSment life insurance companies or aSSo-
Citations, sick, accident and funeral benefit
assessment associations, and sick and acct
dent associations, so that these companies
or associations will be required to file with
the superintendent of insurance, on or be-
fore the first day OF March, a detailed an
nual statement, sworn to by the president,
vice president, secretary and assistant sec
rotary. showing its true financial condition
on the 31st day of December next preceding.
and also a statement showing that 1t pays
the maximum amount named in its cert1h-
Gates or policies. The bill further specifies
that:
Every such company or association doing
a life insurance business only that issues
certificates or policies to individuals Tor
not more than one thousand dollars shall
depc sit in the registry of the Supreme Court
of the District of Columbia, to guarantee
the payment of benefits provided for
in it's certificates policies, United States.
municipal other bonds the market value
| of which shall at all times be as much as
| $4,000" Similarly, it Is provided that such
| companies issuing policies for more than
| 81 Goo shall deposit bonds of a value OF
| not less than 100000
With reference to other classes of insur-
ance the drafted measure proposes that:
Sickness Accidents, Funeral Benefits.
"All sick, accident and funeral benefit as
sessment associations, and sick and acct
dent assessment associations shall deposit
in the registry of the Supreme Court OF the
District of Columbia. to guarantee the pay
ment Of benefits provided for in its GER
tificates or policies. in lieu of the bonds
hereinbefore required of assessment life
insurance companies or associations Unit
ed States, municipal or other bonds, the
market value of which shall at all times be
as much as ten thousand dollars
Such companies may not the bill says,
issue certificates or policies for greater
amounts than $500. All companies men
toned in the section are required to Sc
cure q license from the superintendent of
insurance before transacting any business.
ents duties that he shall suspend any COM
pany from business IL at any time the mar
ket value Of its bonds falls below the stand
ards established. and IL the deficit be not
| made up within sixty days he shall revoke
| the license
case any company fails to pay within
thirty days final judgment or decree rem
dered against II by any court of competent
jurisdiction.