The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1907-01-15
INSURANCE.
Remedies Suggested for Evils and
Abuses ill the Business.

Since the Insurance Department was
established, the revenue collected from
insurance companies doing business in
the State has greatly increased.
In 1899, the last year under the
old system, the Secretary of State col
lccted taxes to the amount of $S4,-
SI9.28, and as his compensation re-
ccived fees. and was allowed $1,000 for
clerk hire. During 1905 the Com
missioner of Insurance collected $2O5,-
ia OF from the companies, and the
seven years since the Department was
organized, $1,043, SOAPS has been re-
ceivcG, which makes an annual aver
age of $149,543.46. The Commissioners
is paid $4,000 and some fees paid by
the insurance companies, and allowed
$1,000 for clerical assistance, While if
the old system of fees had continued,
it would have been $50, 283.5O more
than under the present laws. The Com
missioner handles over $500, 600 each
year, and keeps at least four hundred
accounts; yet has no regular book
keeper. The work is growing i'm
mensely each wear; he needs more
help, and | earnest hope YOU will al
low enough to obtain the assistance
required.
The Commissioner reports that dur
ing 1905 the premiums collected by
foreign life insurance companies in
this State were $4 ,010.44f, and those
CoIltttttt IN 1T Nbiilit tlIlto -, ~ ,
making a total Of $6,360,993 Life in
suranCe is one of the safest and best
means of providing for q mans family
after he is dead, and fire insurance the
only safe means of protecting ourselves
against loss by fire; therefore, every
wise man, who can afford it, should
be encouraged to insure their lives and
property. thus guarding against future
poverty and loss.
We desire foreign insurance com
panics to do business III our State, and
Will protect them all we can against
fraud and wrong; but is it not
fair for them to collect and carry
away over six million dollars of our
money to enrich and build up their
homo States.
Two remedies have been suggested:
90 The enactment of Il law making
it IL condition precedent to a foreign
cOmpany'S doing business i'll our State.
that they shall, before January fst
each year. submit to N Insurance
Commissioner satisfactory evidence
that they have invested in solvent
North Carolina securities or property
an amount QUA at least to fifty per
cent OF the premiums collected on thu
policies Of the people and property
of tbs State. a great many countries.
and some States. have adopted this
plan, and It works well.
(2) Or that every foreign company
doing business in the State make a
deposit. in North Carolina securities
tO be approved by the Commissioners.
OF not less than $4,000 Or more than
$4,000, according to the amount of
business done by the
Why should honest companies object
to either of these plans? investments
are as safe and remunerative here as
elrewhere, and while helping our State.
they do themselves no wrong.
Some companies say that if we adopt
this law. they will leave the State.
Such threats are idle and have no
terror, for while we want all to re-
main; still if they go, we will have
enough remaining. which, with out
strong home companies, can easily do
the life and fire insurance business of
our people.
These are only suggestions of mine
You may have some better plan, or
honestly believe it unWise to require
anything of the kind; but to me it
seems perfectly plain that such re-
quirement would mean great things
for North Cardinals growth and de-
ve.opment.
Congress having declared that each
State must regulate insurance for itself,
I suggest that you have the Commits
sioner go carefully over with you all
our Insurance laws. and make all
neces airy amendments, so as to give us
up-to-date laws.
Much complaint has been made
against what is termed industrial in
suranCc. it being charged that some
of the companies doing this kind of in
surancc are practicing fraud and eX-
tortion. This should be carefully guard
ed against. and can be stopped by the
adoption of a uniform policy, prepared
and approved by the Commissioner,
for these kinds of companies. New
York has also adopted Il uniform life
policy, and it might be we'll for you
TO cor ider if this plan would not work
Wei in our State.
II you are convinced after a care.
fui iixcSfigatiOn OF the net earnings of
itc ana fire insurance companies that
The premiums charged the policy
holders are too much. you should re-
due them at once: but il said premi-
tnts arc fair and reasonable. do not,
through prejudice against corpora
tons. in any way modest them, thus
iniuring Il praiscwOrthy business.
SO much misconduct and actual
crime have of late been charged
against certain insurance companies.
that have used their poliCT-holderS'
money for corrupt purposes, that per
haps it would be we'll to enact a law.