Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-02-04
SUPERINTENDENT REPORT
Believes Sound Methods May Here.
after Be Expected.
OPPOSES VOTING By PROXY
Adequate Rates Desirable in Fraternal
Business-Suggestions on Auto
mobile Risks.

superintendent or insurance. has Competed
his annual report for transmission to the
state legislature. The chief points OF the
report relate to the effect of the San Fran
cisco disaster on New York state compa-
MES. to automobile accident insurance leg
fslation and to the operation OF new life
Insurance laws passed since the Armstrong
investigation He believes the publicity
provided for in these laws will insure safe
methods and good conduct on the part Of
Insurance company officials in the future.
Considering the extent of this disaster,
SAYS the report, in dealing with the San
Francisco fire. "the New York fire compa-
MES suffering a less of over s23. 100000. the
companies in other states of some $4,000
OOO and the foreign fire companies OF other
countries of some $5SOOOOO0. 1t is source
of congratulation that so few companies
have been compelled to discontinue bust
ness and that the insured have received IN
the majority of cases such prompt ana
satisfactory adjustments. One company OF
this state has been placed in the hands or
a receiver. Three companies have retired
from business, one of which has been sup
planted by a newly organized company.
1.-The showing of companies OF other
states has not been unsatisfactory
Automobile Accident Insurance.
Mr. Kelsey deals with automobile acct
dent insurance as follows:
1T may be desirable by express pro-
vision in the law to recognize damages to
property in connection with the running
OF automobiles. The privilege should GER
tainfy be limited to the use of automobiles.
and the property damage to the car. or
caused by the car to other property. should
be distinctly provided for in a new sub
division of section TO-
IF contract Is to be entered into In
Identifying against personal accident en-
f,1n Hal nd 6a nna
connection with use of automobiles the
corporation issuing such contract should
be compelled to have the capitalizati ton
contemplated under section II for three
lines of business and the deposit required
under section Il for three lines of busi-
ness
of such hazardous character as to re-
Quire proper safeguards to capitalization
and deposit.
New Life Insurance Laws.
The operation of the insurance law I'M
der amendments of 1906 affecting the BUSH
ness OF life insurance has not been applied
in many important provisions to an extent
enabling the department to determine re-
suits therefrom," continues the report, TAX
ing up the life insurance question.
Whatever uncertainties prevail as to the
complications in executing the law. Its DOM
mating principle of enforced publicity Of
details of business affairs in life Insurance
corporations will promote and insure safe
methods and good conduct by their re-
sponsible officers.
of the special acts of 1906 originating
with the Armstrong committee. chapter 123
legfslating out of office the directors Of
every domestic mutual life insurance COM
pany and providing for the election of an
entire new board of directors, while radical
in possible consequences. did not AFFECT the
ordinary course of elections of directors
except in the Mutual and the New York
Life Insurance companies.
"A protracted struggle for the control of
each of these great corporations has been
pending for months, under exceptional cir
cumstances and with no presidents to
guide the conduct of the campaign or man.
ner of canvassing the votes.
1T Is believed a decision will be made
and certified to by the inspectors of election
after such careful examination and rigid
calculation of the votes lawfully cast in the
election as will preclude questioning the
result A disputed count and legal con-
troversy cannot but prove disastrous to the
corporation involved and injurious also to
the entire business of life insurance.
Voting by Proxy.
1T is questionable If regulations for filing
and maintaining lists of policy holders by
companies should remain In the present
form. All ambiguity should be removed
from provisions relating to the application
of section "a to election of directors in do
nestle stock life insurance corporations.
Voting by proxy should be eliminated
II the feature of voting by mail is re-
tanned
Taking fraternal insurance. the report
says:
The experience OF the last few years in
some half dozen OF the leading fraternal
orders has demonstrated that the rates
charged have been entirely Inadequate. AS
a result the beneficiaries of those members
dying in the earlier years of these institu-
tons have received excess benefits dispro-
portionate to the payments made, while
the persistent members have had to bear
the burden of such excess payments in ad-
dition to the necessary increase in their
assessment rates with advancing age There
can be no dispute as to the desirability
of a sufficient and adequate rate.
While IL may not be possible to correct
conditions in the existing orders, II Is prac-
ticable. and in the judgment of this depart
ment. IL is within the province of the leg
tslature to safeguard the interests of fu-
ture insurers by requiring new fraternal in
corporations to charge adequate rates by
express provision that rate not lower