The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1907-10-26
The EARTHQUAKE
CLAUSE IS GOING
CALIFORNIA MAY EJECT INSUR-
ANCB COMPANIES WHO HAVE
TRIED TO USE IT.

SAN FRANCISCO October 15-There
is a laugh in insurance circles at the
big English companies that now are
cutting the earthquake clause from
their policies. They are doing so in a
last effort to be "good dogs and keep
the Insurance Commissioner and the
Attorney General from kicking them
out of the State For thus saith the
law-section 61S of the Political Code:
IF any foreign insurance company
doing business in this State shall trans
fer, or cause to be transferred to the
United States Circuit court from any
court of this State having jurisdiction
of the subject matter, any action or
special proceeding arising or growing
/ out of any business previously trans
acted in this State then the Insurance
Commissioner shall have the power,
and it shall be his duty upon receiving
a certified copy of the record showing
the facts hereinabove set forth to i'm
mediately revoke the certificate of au-
thority revoke the certificate of au-
| thority authorizing such company to
transact insurance business in this
State"
The law didn't read eractly that
way before the big fire of April, 1906.
1t was then an old law, and provided
that actions should not be transferred
to the United States courts from the
District Court''-The old designation
of the now called Superior Courts"
before the change of name was made
by the Constitution of 1879.
After the confagration some Of the
foreign companies decided they would
have better chance to avoid paying
their just debts if they appealed to
juries in the Federal courts than they
would to juries in the State courts. To
be sure the Federal juries have SOAK
ed" these insurance welchers right
along just as the juries in the State
courts would have done. The best the
foreign corporations have secured was
one disagreement in the case of the
Dunham-Carriage-H Hayden Company. In
> all other cases the verdicts have been
against the corporations for full
amounts.
However, Attorney Van Ness and
= Attorney Coogan in their wise way
= thought they saw better chance in
the Federal courts, and transferred
e cases to them. Van Ness notified In
| Suranpe Com m ieeioro,. u NF,r... NILE
= that the transfers had been made, and
, then drew attention to the technicality
about the District Courts" Wolfe
= Webb, and the last Legislature prompt
r ly cured the technical defect in the
law by passing Wolfe's codification of
= the laws relating to insurance and the
l Insurance Commissioners
3 Some cases were transferred to the
United States courts after the law OF
. 1907 had been passed, and that law
hasn't even the fimsy technicality
about the Districts Courts" instead of
the Superior courts" So it would
look very much as if Commissioner
Wolfe would have to kick the Offend
ing companies out of the State.
> Those offending companies are among
. the largest in the business. The ones
affected are the Commercial Union.
the Alliance. The last named company
has attempted to withdraw from the
State, but the withdrawal has not been
recognized by the Insurance Commits
. sioner. The Others are trying their
: best to keep from suffering the pen
atty of ejectment. Attorney Coogan
has been around rubbing his hands and
promising to be good; and the elimina-
ton of the earthquake clause" is
> part of the being good.
), There has been some delay in the
. Attorney-General's office. The matter
= OF the kicking out of the companies
: that transferred their ceases to the
: Federal courts was in the hands of
n Deputy Sturtevant when he was an
J, pointed a Superior Judge in this coun-
= ty' and his successor has not yet go,
e tull grip on the law in the case. But
the Insurance Commissioner says he
cannot see any other end to the matter
e than that the offending companies will
n have to get out of California.