The San Francisco call., 1906-12-28
WOLF WILL SHOW
INSURANCE NEEDS
Commissioners Report to
Governor Is to Include
Many Pleas for Reforms
WANTS DEPOSIT LAW

WANTS DEPOSIT LAW
II the insurance companies should
maintain lobby ct the coming ses-
sion of the Legislature State Insurance
| Commissioner E. Myron Wolf will keep
1t busy. In his report to the Governor,
now nearing completion, he will rec
ommend radical changes, such as a
standard policy, deposits for the BEN
eft of policy-holders and the printing
OF exceptions" across the face of polf-
cies in large red letters.
In discussing his report Commissioner
Wolf said yesterday that the need of
insurance legislation had long been
neglected because the people had made
no demands and the companies had
actively opposed every suggestion of a
change. His remarks made it plain
that a long deferred battle would soon
be on Even where the main plans
might be acceptable trouble over the
details seems certain.
For instance, advocates of reform do
not agree on an important point of the
proposed deposit law. All want de-
posit this side of the Rhine, but some
want it at Sacramento under the eye
of the State Treasurer. while others
would be satisfied if the deposit were
This question apparently will be set
tied in committee, but in any event
friends of stand pat insurance compa-
MES will probably find enough work
to keep them actively engaged.
Commissioner VOLTS report. will
probably be completed Sunday aad may
be in the hands of Governor Pardee the
following day. 1t is to be a oompre-
hensive document reviewing the whole
situation and giving numerous tables
showing what has been done in insur-
ance in this and other communities.
WOLF TELLS OF NEEDs
II am working on my report to the
Governor Wolf said. This report will
recommend legislation on all branches
of insurance--fire, life and miscella-
neous. There has been scarcely any
insurance legislation for years because
no one but the companies has taken
any interest in the subject The peo-
pie were not interested, and there was
no change in the laws because the COM
panies did not want a change. The
California insurance laws are vague
and indefinite, in some respects conflict
ing, and insurance companies generally
have been active in suppressinC legis-
lation
"The confiagration of last April dem
onstrated the necessity of amending
the fire insurance laws. / believe
there is need of standard form of
policy and a deposit law the latter
providing that no company be permit
ted to do business unless it has some
where in the United States deposit
for the benefit of policy-hoiders. The
disaster of last April revealed that
some of the German companies did not
have a dollar on deposit anywhere in
thsi country.
Another important question is what
| to do for those merchants who can't
| get enough insurance in companies au-
thoriZed to transact business in the
State. Then there is life insurance
The big developments in New York
made it plain that there should be some
change in our laws. The committee of
fifteen appointed at the conference of
Governors, Attorneys General and In
surance Commissioners held in Chicago
last February made number of rec
ommedations in a report which I have
just received. This report I am going
to try to adapt, so far as is practicable,
to the laws of California This would
mean radical changes and necessitate
many amendments. Opposition is prob
able, but there are some basic sugges-
tions which hope will meet with gen.
| eral approval 1 shall recommend cer-
tain changes, such as limiting the num-
ber of kinds of insurance in which mis-
cellaneous companies may engage. This
class includes the accident, surety and
liability companies, also those that take
risks on steam boilers, plate glass and
the like. Some attention will be given
to surety companies
BETTER FORMS REQUIRED
"The committee report which 1 seek
| to adapt to our needs recommends
standard forms of policy. At present
the companies can write any kind of
|. policy in California. The result is a
document that is essentially company
document, seldom read and generally
not understood by the person taking
| the insurance. The committee of which
l have been speaking submits a num-
Der of forms which it thinks proper for
! the companies to use, but the sugges-
tions offered do not wholly meet Cali
| fornian conditions.
''The New York form of fire insur-
ance is Objectionable. My idea is to
recommend form, taking either the
New York or the Massachusetts method
as basis, and using it for the purpose
of establishing a California standard
form. The New York form permits Of
riders. Will California allow riders?
If so. should they be limited or SO Ia
| beled and distinguished that man will
know what he is getting? If there is
to be an earthquake clause the words
'earlnquake clause should be printed
across the face of the policy in large
red letters. Then there could be no
misunderstanding
Further, 1 shall ask legislation to
put the Insurance Deparement of the
State government on a decent basis.
Fire, life and miscellaneous companies
all have specialists, but the State ex-
poets one man to be fourteen kinds of
specialist and do it all. My depart
ment has collected $250,000 this year,
and is surely of sufficient Importance
to deserve consideration at the hands
of the Legislature Without adequate
provision it cannot do the work it is
expected to do
DIccIIcc R[c[hpcH