The San Francisco call., 1907-01-29
INSURANCE DEPOSIT
IS OPPOSED
Companies Are Not to Be
Forced to Give Heavy
Guarantees to the Public
REBATING MUST STOP
CALL HEADQUARTERS,
1907 EIGHTH SVQEUT

SACRAMENTO, Jan. 2S.-Insursnce
companies viii not be asked 10 Ceposit
100000 each with the State Tres surer
OF California This was made apr aren't
by the discussion tonight. when he
Assembly committee on insurance and
insurance laws took up the Coghlan
deposit bill Insurance Comunissioner
rWof deemed III inadvisable. several
members Of the committee expressed
the same opinion, and y. c. Coogan, at
tofney Tor the IRE underwriters de-
cl6reo retaliatOry laws such as are in
operation in thirty-six other States
would legislate all California fnsur-
ance companies out Of business He
pointed out that retaliation would mean
demand for deposits aFgregating
more than 100000 Assemblyman
George J. Hans OF Fruitvale suggested
tnat companies insuring in California
os required 10 furnish a surety bond
out the whole matter was put over
without definite action.
The Eshleman bin, making the giving
3 or Offering Of rebates by life Insurance.
companies a mis6emeanor, was given
favorable reception. So well did the
committee like the idea THAI II was de-
: leioeo to amend the bill so as to include
IRE and accident companies.
WOLF EXPLAINS FORM
4 Insurance Commissioner Wolf ex
FORM prepared by him and embodied in
bills introduced by Senator Wolfe and
Assemblyman A. NJ Drew. the latter
chairman OF the Assembly Insurance
committee.
I Assenblyman Stanton OF Los Angeles
fooJecteo vigorously 10 the provision
permitting riders.
Would not these riders vftlste the
standard fOrm?" he asked
, No. answered Wolf They vvould
! merely permit changes on which in
sureo and insurer agreed"
Assemblyman Stetson OF Oakland
asked II portions OF the standard form
could be nullifed by riders and re-
ceiNed an affirmative answer.
II that's the case" said Stanton
mere IS no use Of a standard form. II
we intend to permit other forms nv
means OF riders any legislation would
be superfuous"
Assemblyman Davis OF Housster
thought there would be some beneff in
preventing deception. Assemblvn,an
Lucington OF san Diego opposed per
mittIng an earthquake clause under anv
. circumstances Further he wanted TO
egualize rates.
Assemolyman Hans thought II would
be a good idea TO have two standard
1orms' one with an earthquake clause
and one without. Commissioner Wolf
said this could be done easily.
LAW BEING VIOLATED
The discussion struck a bypatb
Lexington spoke OF agents in San
Diego writing insurance for .couDar1 r1ies
that had withdrawn from the State.
l.eavitc called on the Insurance Com
mission 20 take notice OF the reported
violation OF the law
= pou gentlemen VIII give ma zn
= foFflfLtlon replfeu Woff, t~T will go
after these people. The same thing is
being done all over the State. There
are no enc of violations but II takes
money to prosecute. Los Angeles Is
hotbed Of wildcat insurance. Down
there policies are being turned out thar
ere not worth the paper they are writ
ten on"
Attorney Coogan remarked that the
fire underwriters stood ready to fur
nish money 70 prosecute violators Of
the law. Wolf replied by expressing
the opinion that p department which
turned over S2e0.00 into the state
treasury last year should be given an
4 appropriation
This ended the discussion. No ex-
eoUtive session was held so no definite
sction was taken The committee viii
meet gain Wednesday evening. Among
the amendments to be adopted is one
striking petroleum from the list OF
things that must not be kept in an in
sured house. AS the bill now stands il
would virtually prohibit the use OF
kerosene lamps.