The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1907-01-14
To CREATE NEW
DEPARTMENT.
Most Important Bill of ses-
sion Presented Today in
Both Branches.
INSURAnncF OF COURSE
Object to Separate This Branch From
Auditors 0ffice-New Commission
er Given Much Power.

What is deemed by many the mos
important bill that will come beff 9
the Legislature was introduced in both
branches this afternoon, shortly after
the session opened. Representativ Bah
cock introduced the bill to the house
and Senator Farber stood spencer for
the senator This is the bill separating
the insurance department from the
state auditors office. and creating a
new department to be known as the
department of insurance, with the COM
missioner of insurance at It's head. The
pure food and the public health bills
were offered too.
In his message Governor Hanly plain
ly stated that he regarded the insur
ance issue as the most important one
of the session. 1t Is supposed that the
bill introduced today, on the first roll
call for bills, in both the house and the
senate Is a bill that is admins
trative measure.
The bill is exhaustive, so far as the
regulations for a new department are
concerned. 1t does not affect the tech
nical features of insurance, such as
valuation of policies, preliminary term,
etc. leaving these matters to be dis
posed of in later bills probably. 1t is
foundation for all others that are to
come.
Creates Insurance COmmissiOner.
1t creates an insurance commissioner,
with salary of $4,000. who, within
fifteen days after his appointment by
the governor. (Which appointment is
to be within sixty days after the pass
age OF the bill) will qualify and give
bond for 500. 900. He will Immediately
take over all OF the power formerly
srgld Asystne state auditor as insurance
commissioner and in addition, new
power provided for in the bill itself.
The commissioner is to have complete
actuary. salary, $4,000; two examiners.
salary 900 each; securities clerk. sal
ary $4,000; another clerk. salary $1,000;
and two stenographers, each with a
S720 salary. All of the office help and
the commissioner himself-are all to be
paid direct from the state treasury.
hue commissioners is to have complete
power of examination of any life com
pany, foreign or domestic; he may con-
duct examination at either his Office
or at the office of the company; ma.
require any book, record or documen
to be submitted in examination
Furthermore each company doint
business in the state will have to sub
NIT to him all of their estimates, rat
books advertisements and general lit
erature for inspection. This woul
tend to prevent the circulation OF will
cat estimates. The issuance of specia
contracts Of any sort, and the furthe
payment on contracts already issue
is forbidden so also is the use of a.
agency company by life insurance com
pany.
Provides for Charter Revocation.
other provisions make way for tn
revocation of a license or a charter of
company that is near insolvency; on
that refuses to obey the demands of tn
commissioner; one which disobeys tn
Indiana statute. In some cases the re
vocation can be brought about only b
court; in other cases, the commissions
may revoke licenses summarily.
Rebating is prohibited. Penalties ar
provided for the punishment OF any off
Ger or agent who swore to false item
in the annual statement Provision
made for the trial of any agent who
accused of using questionable method
in selling insurance. In short. 1t make
the insurance commissioner one of tt
nose powerful officers in the state.
Two other important bills that weI
introduced today were the pure foo
bill and the public health bill, both pro
ducts of the state board of health. Tt
pure food bill follows the lines of I'll
new federal pure food bill very closel
The public health bill provides for a
effective administration Of the preseI
health laws.
The house was swamped with ne
bills Only ten had been introduce
until this afternoon. and the member
made up for it. Many were introduce
in the senate also. After the afternoo
sessions in both houses it was though
that the committees would get down
work. The elections committee in II
senate was down for Monday afte
noon meeting. This is the commit,
that considers the contest of Talco
and Bingham.