Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-12-01

ANNUAL REPORT OF THE DIS
TRICT SUPERINTENDENT.
Need of a Revision Of the Laws.
Decrease Of the Number
Of Agents.

Thomas E. Drake. superintendent of in
surance for the District of Columbia.
submitted his annual report to the Com
missioners yesterday afternoon showing
the transactions Of his department and
the disbursements of all the licensed in
surance companies in the fiscal year end
ed June 30 last. Mr.. Drake reviewed in
surance generally and laid particular
stress upon the urgent necessity for bet
ter and more stringent laws in the Dis
| trict.
Mr.. Drake said that because of the
wealth IN Washington. and because the
capital OF the nation is located here, the
ioeal insurance laws should be Ideal.
| .Ihey are he said. ION the contrary,
| the weakest. most ambiguous and the
hardest to administer of any In Tho 1,,,+o.
States" ''- '"' oii'eu
In making this reference supt. Drake
auoIed from a speech of Representative
McCall OF Massachusetts delivered on
| tl,e moor or the House last February, in
wnicn ne said the code of laws governing
Insurance IN the District of Columbia are
scarcely worthy of the name and that the
local corporation laws would make a
Jerseyman blush
Mr Drake said that in view Of the bad
sonaltions existing it is to be hoped that
uuilns the next session of Congress
dienoatory bills which will be prepared
ana recommended by his office will be
adopted. He explained that the enact
i Lnent or these remedial laws will enable
MN TO better regulate all the insurance
companies Of the District
He states that in the calendar wear 1906
~ licenses were issued to insurance com
panies. assessment associations and
Iraternal and beneficial associations
| Ihere were 9S9 licenses issued to principal
agents. solicitors and brokers. twenty
| elghf or which were assignments for the
unexp1red term. making total of 1,2.2
rms summary he pointed out shows a
decrease of ten licenses issued to COM
panles and decrease of 40 issued to
agents, as compared with the preceding
year.
Decrease Is Startling.
The superintendent refers to this big de-
crease in the number of agents as a
startling situation. He. said that he issued
an order last April requiring every insur-
ance company to furnish an affidavit
from each of its principal agents in the
District, giving the name and address of
every person to whom commission was
paid and the date Of the first policy placed
during the last license year. At first the
order created somewhat of commotion
he said, and 1t took him some time to
convince all the companies of the legality
of this requirement, but the order was
finally fully complied with, which re-
suited In the discovery that more than
500 individuals had operated as solicitors
and brokers without license during the
last license year. He said that he learned
also that some Of the agents had, in some
instances. fnnocently abused their license
privileges, not only the past license year,
but from the establishment of the local
insurance department. commencing Janu-
airy 1, 1902
1t IS the intention of the department. as
soon as all the delinquent licenses re-
ferred to are issued to publish directory
containing the name and address of every
company that Is licensed to do business in
the District of Columbia, together with
the name. address and kind of license is
sued to every agent operating in the Dis
trict.
License Fees Collected.
During the calendar year Of 1906 the to-
tai license fees collected were ST., 2127o.
Taxes collected by this office during the
same period amounted to $62OS5. making
total revenue Of S7.297.79. The total ex-
penses Of conducting the department
amounted to $1O,S37.79.
The total amount of premiums paid
during the calendar year 1905 to the
various insurance companies and associa-
tons that were, licensed to do business
here was 81 233,573, which was an increase
over the previous year of 1922, 7SS The
total losses paid in the District during
that time by the various licensed COM
panles and associations amounted to ST.
$780, 03 which were in excess of the pre-
ceding year In the amount of $3.50 1873.
The assets Of the life and casualty COM
panies transactinG business in the District
December 81, 1905, amounted to $685.
9s1, 2739 2 Liabilities. 50 415. SCI. $500: sur
Including to1 -1no-
There was paid in premiums in the Dis
trict for insurance during 1906 S.. O36,-
6O4.23: losses paid by all companies
amounted to s2O23. 92395. The amount
ing the year. exclusive of casualty. was
$151, 1SO 133. 20.
The assets of all insurance corporations
transactlng business in the District De-
cember 3. 1905, amounted to S3219. 44O,-
41.14: liabilities. $2633, 433 eli "a: sur
plus. including capital. $3.50 OOu. $50 20.
Mr.. Drake said that in 1906 two law
suits were Instituted by him against
two principal agents who had operated
the preceding year without licenses Judg-
ment in one instance was given and is
still unsatisfied. In the other case the H.
cense fee of $50 was subsequently paid,
after which the case was dismissed. The
superintendent discussed at much length
in his report what he termed the opera
tons Of "obstreperous industrial assess
ment life associations" He stated that
the two companies have not submitted
their annual statements to him, as is re-
quired by law, for the calendar years
1904, 1905 and LOG and that they have
for the past three years not been IL
censed. For the purpose of regulating
this kind Of insurance the insurance de-
partment has had a bill before Congress
every year since 1903. and Mr.. Drake
says 1t is his intention to renew his eff
forts to obtain this much desired legisla-
ton.
Need Of Better Laws.
In advocating better insurance laws for
the District Of Columbia Mr.. Drake en-
tered into a general analyzation of the To-
cal territory as an insurance city, He
considers Washington one of the best in
surance fields in the United States, con-
sidering the size and nature of its popula-
ton. He pointed out that there are more
insurance agents in the city of Washing
ton than in any other city of correspond
ing size in the world.
Mr. Drake discussed at much length
the insurance conference held in Chicago
November IL, 1906, and the report Of the
COMMITTEE of fifteen made to President
Roosevelt. which was published in detail
at the time
| In speaking of the substantial qualities
of the companies operating in the Dis
trict Mr.. Drake said it is not the. jeopar-
dizing OF private capital that he is con-
cerned about. but the assets that are sub
Seuuently paid into the commands in the