Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1906-02-23
COMMITTEE OF INVESTIGATION
CONTINUED from Page One.)

superintendent of insurance is requir-
ed for any acquisition of real proper
ty for the home Office of Il life inSur-
ance company, and for the exchange or
disposal of real property owned by it.
Directors and officers Of an insurance
corporation are prohibited from re-
ceiving money or valuable considera
tons, procuring or aiding in any pur-
chase By or sale 10 such corporation of
any property or any loan from such
crpration" and are further prohibited
from being ''pocuniarily Interested.
either as principal. co-principal. agent
or beneficiary in any such purchase,
! sale or loan
The state superintendent of insur
ance is directed to examine into the
affairs Of every insurance corporation
doing business in this state at least
once in three years, and he may eX-
anime any such corporation as often as
he may deem ii eXpedient. The eX
aminers must not be interested in any
insurance corporation.
The privilege now enjoyed by the
stakeholder or creditor Of an insurance
company 10 require the superintendent
upon sworn complaint to investigate
the company is extended to q policy
holder provided. however, the superin-
tondent believes such investigation to
be warranted by the facts.
Upon the re-incorporation or upOn
the amendment Of the charter of any
life insurance corpOratin having q
capital stock. in accordance with the
l .fr-.gN n,
vote OF majority of its directors con-
fer upon its policyholders or upon such
nolicyholders as may have n prescrib-
ed amount of insurance upon their
lives, the right to vote for all or any
less number of the directors in such
manner as may be authorized by a
| vote 'Of the stockholders reDresenting
at least ajority of the capital stock
The famous section IS" of the in
surance law. which requires a policy
| holder to obtain the consent of the
attorney general before commencing
| an action to compel the officers of an
insurance company to render an ac-
| counting OF their trust, is repealed.
Tho bill forbids also the custom Of max
| ing life insurance agents in issuing poll
| cies the agents Of the insured rather
than the company. and any misrcpresen-
tation by an agent as to the terms or
benefits of n policy is forbidden.
| A mutual company without canital
stock may be organized for the purposes.
either separately or taken together, spec-
| fed in subdivisions one and two of sec
ton 20 of the insurance law. These sub
| divisions provide first, for insurance on
the lives and health of persons, and sec
| ond, against injury, disablement or death
| from travelling or general accidents or
| against disablement resulting from sick
ness. Corporations other than a mutual
| corporation may incorporate for other
purposes designated in the section. The
| superintendent of insurance is given adj
ditional authority to safeguard the public
| interests in the formation of Insurance
corporations and it is provided that if the
corporation is stock company, the cap
ital must be fully paid in in cash, or if II
mutual corporation at least 500 persons
must have subscribed in the aggregate
for at least S1,0C009O Of insurance on their
lives and shall have each paid in one full
annual premium upon the insurance be-
fore such company is permitted to trans
act business.
Provision is made for the annual distri-
button OF a proportion Of the surplus OF
each life insurance company to its policy
holders.
1t is expressly provided that no compa-
ny shall allow an agent or broker for pro-
curing an application for insurance or
collecting any premium thereon any. COM
pensation other than that determined in
advance, and if such compensation is to
be a commission it shall be a fixed per-
ccntage. Bonuses, prizes. rewards, sala-
rioS or commissions of any sort based on
the amount of any policy or the aSgre-
salaries to insurance officials exceeding
500 year in any one case must he au-
thorized by a majority vote of the direc-
tors and shall be for one year Pensions
to any officer, director or trustee or to
any member Of his family after his DEATH
are prohibited.
Life insurance companies doing bust
ness in this state after June /, 1906. shall
he limited in their scope of Investments;
They are prohibited from investing in the
shares of stock of any corporation eX-
cept public stocks of municipal corpora .
tons or bonds which are secured by the
pledge of mortgage or shares of stock to
the extent of more than ono-third of the
value of the entire security thereof