The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-03-07
NEW INSURANCE
BILLS IN SENATE
HolIingsworth Would Make De-
partment a Bureau Under
Secretary Of State.
DUTIES ARE EXTENSIVE
CONTROL OF BUILDING AND
LOAN ASSOCIATIONS.

-Four bills creating a bureau Of insur-
ance in the office of the secretary of
state. providing for the appointment OF
Bn insurance commissioner and defining
his duties, were introduced in the senate
yesterday by Senator Charles r. Hol-
Bngsworth Of ogden. They were referred
10 the committee on private corporations
and insurance, which also has under con-
sideration senate bills Nos. . and AZ. ny
Benner X. Smith, dealing with the same
subject matter but In a different form.
The Smith bills differ in one material
respect from those introduced by Mr.
Hoilingsworth in that they provide for
the establishment or a separate and dis
tinct department charged with the exeeu-
tion of all laws in relation to insurance
companies doing business in the state
while the measures introduced yesterday
make the insurance department bureau
Under the supervision of the secretary of
state. In respect to powers granted the
commissioner and the extent of his du-
ties. the Hollingsworth bills are more
complete.
BY their terms the commissioner is to
act under the direction of the state
hoard OF examiners and the secretary Of
state, and whepever ordered By the
board of examiners he shall examine the
accounts, books and records of the state
institutions and perform such other du-
ties as may be prescribed by law or by
the state board Of examiners"
Control Of Loan Concerns.
In addition TO these duties he is re-
quired to exercise control over building
and loan associations doing business in
the state and to examine them when
ever he may deem il necessary. In order
10 make the laws governing these assoc
Citations conform with this provision. sem
ate bill No. IFS was introduced Hero
tofore the state has exercised little or no
control over this class of organizations
but this bill puts them in the same cate
CORY with insurance companies.
In detail it provides that before being
allowed TO do business in the state each
association must submit a full report OF
its financial condition TO the insurance
commissioner, who. If he considers that
its business is safe and conducted on a
reliable plan. shall issue a certificate of
authority. When, in the opinion of the
commissioner any association is con-
Quoting its business illegally or pursuing
plan injurious to the interests of its
members or is IN an unsafe condition, he
shall notify the directors to amend its
course and put its affairs on a safe ba-
sis, and Il this Is not done the attorney
general shah take action to bar the as
ISOLATION from doing business in the
state.
Fees of Commissioner.
Senate bill No. liz is a voiuminoGs af-
fair and relates to the details of the du-
ties and powers of the commissioner, the
fees he can charge for the various ex-
alnlnatlclS lie undertakes OF Is required
10 perform. and also provides rules and
regulations for the conduct of insurance
business In the state. IT is patterned
after the uniform law on insurance COM
panies advocated by the national COM
mission which investigated the subject
after the recent expose in the east In
its terms it differs little from senate bill
No A.. by Mr.. Smith. which covers the
same subject matter.
Both the Smith and Hollingsworth
measures provide that the commissioner
shall pay all fees collected into the state
treasury.
Matter of Expense.
The principal argument advanced in
favor OF Mr.. HolingsWorth's bill is that
by making the department a bureau un-
Ger the direction OF the secretary OF
state the expense win be smaller than
by creating a separate department. In
the Smith bills salary of 5000 a year
is provided for the commissioner and he
is authorized TO appoint a chief deputy
at a salary of S1.500 = year together with
other office assistants. The Holdings
worth measures provide a salary of 81.
900 year for the commissioner but con-
template that the additional clerical work
can be handled in the secretary of states
office by the present force. Mr.. Smith
would have the governor appoint the
commissioners, while the IIollingsworth
idea is TO have him appointed by the sec
retary OF state, 10 whom he is to De re-
sponsible.
boIn measures VIII De gone over thor
ougbly by the senate committee on pri-
vate corporations and insurance Of
which Senator Herschel Bullen, ir.. is
the chairman, and a report is not ex-
pected until near the end OF the session
1t seems probable at this time that
committee bill Will be framed combining
the best features of both measures.
This insurance legislation is considered
one of the most important matters be-
fore the present session and is attracting
considerable attention in both the sena: e
and house.