Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-15
READY FOR SUBMISSION IN SENATE
Endorsed by President and Best Co,stitu-
tisnsl Lawyers in Land.
EXAMINATIONS LIKE NATIONAL BANKS
Penalty Of One Hundred Dollar, Per Day
for Failure % Make Reports
WIDE SCOPE IN POWER OF DIRECTION
Bill Follows General Lines of One
Framed Last Year, hut Has Been
Materially Broadened ana
strengthened.

strengthened.
! WASHINGTON, Jan. Ex-senator DRYDEN
| has revised his bill contemplating govern
ment control of insurance and will reintro-
! duce 1t in the senate tomorrow He has
followed very closely the investigation being
| conducted by the New York legislative
committee and this has aided him in per-
| fecting his measure until now no ex-
presses the belief that It will correct the
| evils exposed by the New York inquiry,
Publicity is the keynote of the bill, and
coupled with this safeguards for tho
! detection of wrongdoing and the punish
ment OF those so offending II defines poll
cies, or insurance contracts. as instrument
! talities of commerce and provides for the
| regulation of the business through tho
! medium of a comptroller OF insurance and
along lines similar to the control exercised
| over national banks. The author says he
believes this will go far toward meeting
! the objections of those wslo have ques-
toned the legislative possibilities of federal
! regulation of insurance. The senator says
the bill has the endorsement OF the presi-
dent administration officials eminent con-
! stitutional lawyers i'm and out Of congress,
and others who are familiar with its gem
the demands of the situation than any
Of the other numerous pending measures.
Senator Dryden has long been champion
Of federal regulation.
Discussing the principal features OF the
bill Senator Dryden today said: THE new
bill providing for the regulation and con-
troll OF interstate insurance by congress
follows in broad outlines my bill OF the
last session. but with very important modi-
fcations and additions. which, I believe,
| meet all reasonable demands for an ef-
fective and uniform method of govern
ment control of insurance interests The
bill contains some fifty separate provisions
OF which the first thirteen relate TO the or
ganization Of the proposed bureau OF In
surancc in the Department OF Commerce
and Labor The bureau is to be In charge
Of a commissioner OF insurance who is re-
ouired to furnish bond OF 100000.
Provisions of Bill.
''In nearly all essentials the bill as far
4 as possible CONFORMS to the-orgnric acts.
"The comptroller is required 10 establish
rules and fees and regulations for the
conducting of the insurance business IN
Guiding annual and other reports to be
made. The penalty for failure to make or
transmit any report or statement OF fact
| raou,red Is 500 for each day of delay. the
comntrolIer is also required to have con-
; servotiye valuation made of the business
I of life companies or determine the rem
! surance reserve Of other companies upon
anproved methods aud tables and by such
, q standard of interest MS may In his Judg-
,,ert and discretion best serve the purpose
20 dotermine and establish the true finan-
= cial conditions and attendant liabilities OF
, companies. ,,. ,,,o
Authority and power to INQUIRE INTO
the details and facts OF management vi al
corporat tions engaged In Interstate lilsul ah0e
Go given the comptroller and he may have
.bo cornanies examined by special examin-
ers whenever necessary or eNpeulent' 10
This cnd he may invoke the aid of any
court of the United States to require the
attendance and testimony of witnesses ana
tho production of books papers and docu-
nents. Failure to obey such order or tho
, court may be punished as a contempt
, thereof. II is also provided that companies
may be investigated by the comptroller
, unon the complaint Of any state commits
5 soner Of insurance
4 Examinations OF Companies.
"rbe actual and reasonable expense or
Y = o,,erv examination or special investigation
Of the affairs of an insurance corporation
2 engaged In interstate insurance must be
maid by the corporation so examined All
chargos and fees for making such ex-
- aminations however must be presented In
the form of an itemzed bill approved by
r the co,nptroller Of insurance and the
o anount thereof must he paid into the treas
> urv of the United States. Corporations
transo citing Interstate or foreign insurance
are specifically exempted from making any
o other or separate statements or reports or
i held to be subject to any visitorial powers
: of examination of its business and ae-
q counts. other than by the comptroller OF
J. insurance or by the proper authorities of
the state of Incorporation or origin.
Corporations engaged in the business OF
insurance in more than one state must hle
a copv of their charter or other documents
of local authority and annually publish a
D list Of their stockholders or trustees. They
! arc rcq,ircd To make a deposit OF $i0o.o1l
/ either with the commissioner of insurance
/ or with the proper official OF the state OF
incorporation or origin. After these re-
!, duirements have been met To the satlsfac-
: | ton of the comptroller certificate OF
: ! authority and power To transact Interstate
. insurance shall be issued, whereby such
:, corporations are authorized 10 transact
. ! business in any state, territory OF district
| Of the United States without further super
vision or regulation than by the comptrolleI
] of insurance or tHe uulS duNlloIlIeu
( Of the state of Incorporation or origin
n Provision is made for conditions under
e which the certificate OF authority can bS
D, revoked and for proceedings In case OF
! recoivership. Nine provisions relate &c
: crimes and penalties Unauthorized insur-
% ance s defined and proper penalty foI
n such insurance Is provided for.
y. by this bill the business of insurance 1,
= made a national interest and national laws
= are hereafter to govern insurance con.
tracts and the conduct or management OF
insurance corporations. In addition thereto
/. the companies will be subject TO super.
n vision and regulation by the government
l. OF the state. territory or district OF in
=, corporation or origin. The needless. ex
pensive and dangerous method OF oven
N supervision, over-legislaton and over-taxa.
- ton by some fifty state or territorial gov.
| ernments will come TO an end The comp
" troller Of insurance will be a responsible,
Iodlcer anpointed bN the Dfesidanl sneoIao.