The Elbert County tribune., 1906-12-20
LAWS
RECOMMENDATIONS OF iNsUR
ANcE SUPERINTENDENT.
CONDITIONS IN COLORADO
Income from Department Has In
ereased-unauthoriz Companies
Barred-Governor Should Appoint
Superintendent.


Denver.-E. e. Rittenhouse. deputy
superintendent of insurance, has CON-
pieted his review of the work of the
department during the past year and
his recommendations in the way OF re-
form Legislation to he presented to the
Legislature at its coming session.
This mas been submitted to State Audi
tor A. e. Bent, ex-ofIicio superintendent
of insurance, who will incorporate IL
in his annual report.
A gain of more than $4,000 has ac-
crued to the state from the vigorous
enforcement of the department af
fairs since Mr.. Rittenhouse assumed
| charge July ], 1905. He collected
$6.126 agents license fees which were
In arrears, with an increase of only
$496.57 in the total expenses of the de-
partment over the previous year. The
| income of the state has also been in
creased $i.072 by further enforcement
of the Law relative to the collection of
solicitors fees, etc. Regarding the un.
authorized soliciting of insurance in
Colorado the report says:
THE department eau not prevent un.
authorized companies from soliciting
insurance through the mails. but it has
| Il
practice OF unauthorized companies
sending solicitors to operate in this
state in defiance of the law.
All Colorado companies have been
| examined during tie past year, with
| the exception of one, which will be ex.
| amined after the first of the year. The
| report continues:
rhe Mountain Mutual Fire Insurance
Company and the Loyal-Northwestern
Mutual Fire Insurance Company, both
| local assessment concerns, were re
qulred to so out of business because
of their failure 10 pay fire losses Both
were managed with great extrava.
gance aud with no regard to their obll.
gationG. In the case of the Loyal
Northwestern Mutual Fire Insurance
Company, largely through the efforts
OF the department, the losses We're paid
by another company as consideration
for the privilege of reinsuring the out
standing risks"
Three companies outside of the state
wefo found to be doing an Illegal bust
ness and were forced to suspend IN
this state.
There arc over $4,000 people in
Colorado holding policies in life insur
ance companies, ana as many more arc
insured in fratcrnal orders These
100000 life policy holders, with their
direct beneficiaries, number over 800.
900. In addition to this, nearly every
house owner in Colorado carries fire
insurance, and several Thousand hold
casualty and other policies. 1t is
therefore, reasonable to say that
ninety per cent. of our people are d.
rectly or indirectly Interested in main
tanning high standard of efficiency in
the insurance department.
"They have n right to expect it, for
they pay the bill. The salaries and
expenses of the department are paid
for by fees collected from the insur
ance companies, which means that in
the end the policy holders pay them
The fees collected by the department
last year amounted to S34, ,6i9 2S, while
the total expenses were but sl7O23.4S
In addition to this, the companies paid
s1f3,5f1.93 to the department in taxes
(two per cent? on their gross pre-
miums
"The usefulness of the department
can be greatly enhanced by transfer
ring it from the jurisdiction of the au
ditor of state to that of the governor
The auditor is now superintendent OF
insurance ex-offlcio Under the constl
tuition he can serve but two years, and
as he appoints the deputy superinten-
dent of insurance, who Is now this ac
tive head of the department the latter
official serves but two years. This
means that he scarcely has had
chance to fainilarize himself with the
many intricate and technical phases of
his duties before he must make way
for his SUCCESSOR.
"A number CT our present laws gov
crning the work of the department
should be revised. The insurance
agents should lie defined, and the laws
relating to their licensing should be
made more clear. and the primary re-
sponsibility for procuring tho license
should be placed upon the solicitor, his
application to be approved officially by
the company that proposes to employ
him
THE law relating to examinations
Of insurance companies should be re.
vised and an effective penalty provided
for its violation. This law should also
provide that insurance companies will
pay the expenses, but in no case any
| personal feos to regular officers or en-
| ployes of insurance departments. Any
company or agent refusing to furnish
information or to permit of an inspcc-
jtion of books by the department should
| be depliye of their license to do busl-
| ness in Col RADIO
The assessment accident insurance
| laws should be abolished, hut II il 10
not deemed wise to do so, they should
certainly bc so amended as to elilni-
nate the present very questionable fea-
| lures connected with this branch OF
the business in this state.
"A mutual fire insurance law prop.
erly safeguarding the interests of the
policy holder 10 badly needed. The op-
GRAFTON of the present incomplete mu.
.ual fire insurance section has opened
q field for graft, caused loss to many
policy holders and filled the pockets OF
a number of entorprising promoters.
| stock fire insurance corporations
operating only in Colorado should be