The Black Hills union and western stock review. [volume] (Rapid City, S.D.) 1904-19??, 1906-02-23

ployer, together with a brief descrip-
ton OF the legislative matter with ref
erence to which his service is to be
rendered. The committee deems 1t in
advisable to recommend that the legis-
lature attempt to prescribe. expendit-
ures of insurance corporations, but sug-
gests that the rate of commissions be
uniform. Bonuses, prizes, rewards and
other special inducements based upon
the size of particular policies. or upon
the aggregate insurance written, should
be prohibited.
The committee recommends the law
be so amended that the minimum
standard for valuation of policies other
than industrial should be established,
and so that the preliminary terms in
the valuation of policies issued after
1906 should not be permitted. The su-
perintendent of insurance should be re-
quired to fix the legal minimum stand
ard.
Rebate Takers Guilty, Too.
AS to rebates it is recommended THAI
the penal code be amended to provide
that person receiving rebate should
be equally guilty with the one who
gives it.
With regard to new policies the pro-
visions of the statutes should be lib
eralized. The committee recommends
an annual accounting and annual dis
tribution: the companies protecting
themselves against fluctuations III
values by accumulation and retention
Of a reasonable contingent fund.
The committee believes companf 8
transacting business upon the mutual
basis should be forbidden from writing
non-participating policies. Assuming
that funds belonging to policyholders
| through opportunities afforded by de-
ferred dividend contracts have beet,
wasted through lax and corrupt ad-
have been denied opportunities to seek
relief in the courts the committee rec
ommends the repeal of existing law
which provides that action by the attor-
ney general should be condition
precedent to the order, judgment or de-
be left subject to the general provis-
ions of the articles of the code relating
to actions against corpora tons.
| The committee recommends the adoD-
ton of standard forms Of policies ample
in form, clear, concise in language to
be approved by the superintendent of
| insurance.
For Publicity.
| The report goes into the matter Of
publicity Of accounts Of companies at
great length and recommends that an
nual reports should contain statements
of transactions all properties owned,
loans, commissions, legal and leglsla-
tive expenses, salaries, balances. death
claims. profits and losses, dividends,
rates, and all manner of funds.
! The report recommends that viola.
| ton of law be made misdemeanor
The committee recommends that fur
Their powers be conferred upon the In
surance department, and then says:
| Most of the evils which have been
disclosed by the investigation would
have been impossible had there been
(; a vigorous performance of the duties
already imposed upon the department
and vigilant exercise of powers which
the statute cOnfers."
Electns New Directors.
One Of the most important laws reg
ulating mutual companies recommend
! ed by the committee looks to giving to
policyholders the opportunity to elect
entirely new boards OF directors as
soon as provisions Of such law can be
made applicable. To that end the
committee recommends a special act
be passed Immediately providing for
the expiration of terms Of office of ex-
listing directors of such companies on
the 18th day of November next, and
that annual meetings which would 9TH
erwise be held at an earlier date should
be postponed to that time.
In this way it will be possible for
lists of policyholders to be filed UNI
der the statute for nominations to be
made and for policyholders to cast
their votes in person, by proxy or by
mail.
All existing proxies should be de-
clared void SO no proxies should be
voted at such election other than those
Which are given under the statute
within two months prior thereto. The
first election should be under the SUI
pervision of the superintendent of in
surance, who should be directed to APP
point inspectors of election and see
that it is conducted according to law