Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-19
REINSURANCE REPORT
SUBMITTED BY THE ARMSTRONG
LEGISLATIVE COMMITTEE.

The recommendations of the Armstrong
insurance investigating committee, which
have just been made public, make very IN
teresting reading, besides being Of para
mount Importance in their line Following
is a summary of the recommendations IN
the report:
The standardizing of all classes of policies
issued by all life insurance companies, so
that they shall be exactly alike in all re-
spects and shall set forth the terms OF the
contracts offered to policyholders In the
clearest language possible.
The limiting of the investments of insur-
arce funds to standard classes OF securities
guaranteed to pay a fixed annual revenue,
ana prohibiting the investment of insurance
funds in stock of any character, the recon-
mendation of the committee following the
Prussian law on the subject as far as can
be- adapted to the customs and require
ments in the United States. Whlle not SO
drastic as the restrictions placed upon the
investment of savings banks funds, II PAGES
prohibitlve embargo on the use or lnsur-
ance funds for investment In the STOCK OF
subsidiary companies, trust companies,
banks and investment concerns. The COM
panies are given five years 10 RID them
selves of all stocks they now hold
: An amendment of the present law denn-
ing the privileges of officials or insurance
companies and prohibiting them from hav-
ing any individual interest in the Invest
ments of the companies or of being fdent-
fed with syndicates of any character hav-
ing business relations with the companies
with which they are connected
An amendment of the present law uennlng
the manner In which insurance companies
shall report to the insurance department,
requiring them TO file every ninety days,
under oath. statement of new business,
the cost of it, all expenses aside from the
routine operating expenses, and detailed
report of the increase and loss of business.
af avapntiVa officer of
insurance company drawing a salary OF
5000 a year or more must be filed with
the insurance department; his salary must
also be recorded.
Repeal of Section Recommended.
The repeal of the following section of the
insurance law:
Section 58.-No order, Judgment or de-
cree providing for an accounting or en-
joining restraining or interfering with the
prosecution of the business of any domestic
insurance corporation. or appointing tenn
pcrary or permanent receiver thereof shall
be made or granted otherwise than upon
the application of the attorney general on
his own motion or after his approval OF
request In writing therefor or the superin-
ter dent of insurance, except in an action by
a Judgment creditor or In proceedings sup
Elementary to execution
An amendment limiting the new business
of each year so as to curtail the present
exorbitant cost Of maintaining agencies and
under the terms of which the ratio of new
business of the large companies (the Mutual
Equitable ana New York Life shall not ex-
coed the amount written during the year
1905 but giving sufficient latitude for the
expansion of the smaller companies in the
form OF new business
An amendment restricting the powers OF
agents, by making them adhere literally to
tho terms of the written contract offered
poIicy-hoIder, and making the companies
represented by them responsible for their
acts or written representations.
Seven amendments OF a technical charac-
ter to perfect the vital changes proposed
An entirely new law based upon the laws
of Wisconsin and Massachusetts and upon
the measure proposed by Senator Marks