Los Angeles herald., 1907-01-10

Insurance companies, the efforts made
by some 10 evade the payment Of their
liabilities on technical grounds, and
the loss, delay and Inconvenience suf-
fered by the insured has demonstrated
that there should be some amendments
made to our insurance laws affording
better protection to our citizens and
making it more difficult for foreign
company to evade its Just obligations.
However, I'm making such amendments
we should act with calm deliberation,
proceed cautiously and be only actuated
by desire to enact such laws as VIII
amply protect the insured in his con-
tract, which must be fair and Just,
and afford protection to the company
as well. Insurance Is legitimate
business and very important one,
and should be so considered. In leg
.islating care should be taken not to
enact laws containing provisions that
will be so onerous to the companies
that they will be forced to withdraw
from the state. or that will entail upon
our people more expensive insurance
than they pay today.
In matters Of legislation affecting the
insurance business we have not pro-
gressed as rapidly as some OF our sis
ter states, notably New York and Mas
sachusetts. Both of these states have
given the question OF insurance con-
siderable study, and have a very good
code OF insurance laws which nave
proven quite successful.
We may with profit examine the
laws of these two states. and adopt
such as we may deem proper. or at any
rate they can furnish us n safe guide
In drafting those laws which we may
consider to be necessary for the pro-
lection of this state under the condi-
tions existing here. There should be
standard form of policy, providing
against the loss by fire, explosion. col
lapse or earthquake. Under such
policy there would be no doubt as to
the obligations of the insurer no doubt
as to the legal meaning and effect or
the provisions of the policy. and no OPP
portunity to insert clauses not noticed
or misunderstood by the insured. The
contract of insurance should be made
clear and certain as to its terms, ana
this is of the most Importance.
There should also be enacted n de-
posit law under which companies of
foreign countries will not be permitted
to do business in this state unless they
have on deposit in this or some other
state minimum sum, and In addition
thereto the full reserves required of do
mestic companies. as to all policies
issued upon property situated in the
United States where reserve is re-
ouired This is the law in many of the
states. and had II been the law in this
state the Transatlantic and other COM
panies. which have retired to Germany
without paying their losses, would not
have escaped so easily. because their
assets in this country might have been
sufficient to have covered part of their
losses, at least.
All insurance companies should be
required to furnish to the insured upon
demand. the necessary blanks to make
out his proof of loss this demand to be
made upon either the local or general
agent representing the company in this
state, and If none, then upon the insur-
ance commissioner. The demand should
be made within a stated time and the
proof of loss submitted within a fixed
period after the blanks have been fur
nished
There will be many important meas
ures pending before you during this
session, which l have not referred to
and which will require your close at
tention>- The most important will be
in providing money to carry on the
business of the state during the next
two years.
Expenses Increasing
Our expenses appear to be increasing
out of proportion to our increase of
population and wealth. We have MANY
commissions to support, some of which
seem to me to be needless. There is
also q steady increase in the expenses
of our various state institutions caused
by the growing number of inmates and
construction of quarters to receive
them. There is no denying the fact
that California is one of the most eX
pensive states in the Union to care
for and while our attention for years
has been called to the fact, we still
continue along in the old way. Our
burdens have been placed upon US and
we are bearing them. and in all prob
ability will continue to do so. But
those burdens should be made no
greater.
Every effort should be made to pre-
vent any unnecessary expenditures of
money being made. When matters
come before you asking for an appro-
priation, meet it with the question, Is
it necessary? And make the parties
advocating the measure show you the
necessity before you grant it. We all
feel a pride in our state institutions
and want to see them properly man
aged and cared for, and our people are
willing to provide the necessary money
to do this, but we don't want any eX-
travagances. Some repairs to our pub
lie buildings will have to be made and
some new ones constructed to replace
tnOSe destroyed Dy the edrtnquaKe, Dut
before money is appropriated FOR either
the character and extent of the repairs
should be carefully considered. and
the class and expense of new buildings
thoroughly investigated, particularly
the buildings to be constructed at the
Agnews asylum. The care of the in
sane is a big problem in our state.
The percentage is greater here than in
most any other state, while the num-
bers in our asylums are steadily in
creasing. The expense of maintaining
them is great already, and every effort
should be made to curtail 1t where pos
slble, without doing any injury to or
hindering the great work we are do
ing. This much the people of this state
have the right to expect of us, and
here our duty ends.
Ours is a large state and a grand
one 1t is an empire within itself. 1t
rests here upon the Pacific ocean in
regal splendor-a queen among the
states of the nation. Today it is in
viting the best of our country to settle
here and abide with us. 1t welcomes