The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1907-01-15
INSURANCE LEGISLATION.

prosperity.
INSURANCE LEGISLATION.
North Carolina pays over six million
dollars every year in insurance pre-
miums. life and fire, and over half of
that sum goes away from the men
who pay it never to return. There is
need for legislation and the Legisla-
ture ought 10 give heed to the many
good suggestions that have been made.
The recommendations OF Governor
Glenn Will, Of course, receive fun on
s%ideration. The Governor of Tennes-
see. in his annual message, makes rec
concentrations that are copied below
for the consideration of Legislators
and others who are Interested in this
important matter. We quote:
another important question that
you are called upon to deal with is the
question of fire and life insurance.
The question of fire insurance aft
fects our business people more largely
than any other question which is the
subject Of legislation. The insurance
companies ia grown to be strong and
powerful, and it is charged that hey
have formed trusts and combines for
the purpose of arbitrarily fixing pre-
MUM rates tl1cL are unreasonable and
excessive. Rates that would WELD ex-
ccssivc returns on the financial risks
assumed if the business OF these com
panics were conducted on an como
! mic basis.
"The last General Assembly enacted
a law forbidding agreements betWeen
two or more fire insurance companies,
(! or their agents, looking to the main
tenance of special rates on property in
Tennessee. The enforcement of this
law has already been of much benefit
to the people of the State in prevent
ing concerted advances in premium
rates. This law was designed to de-
liver our people from the rapacity of
an organization of fire insurance COM
panieS. 1t is founded in wisdom and
sound public policy and should be
maintained upon our statute looks. If
there should be any amendment to it,
that amendment should be to make it
more effective in accomplishing the
purpose sought in the original act.
Our present law with reference to
! mutual fire companies is imperfect n
should be amplified so as to encourage
the Increase Of organization of county
mutuals and mercantile mutuals
throughout the State. The law on the
statute books requiring that all pol
icieS shall be cOuntersiSned by an agent
! resident in the Statee@WhO shall receive
) the full commission thereon, should
I ~ 4 tIttCtICd,- VI oi tE1Dt -,
as to eliminate that part requiring that
the resident agent shall receive the
fuIl commission, for the reason that in
! it's practical operation it has the eff
feet Of preventing our citizens from
making advantageous contracts outside
the state.
"Thc Legislature should give consid-
Grafton to the matter Of amending our
present building laws with a view to
decreasing the losses by fire on prop
crty in the State and any other matter
I which would have that effect, but |
earnestly urge that the onus should
not be placed upon the policyholdcr.
THE developments of the last two
| years resulting from the Investigation
and exposures in some Of the great
life insurance companies have maze
! imperative the necessity of cnacting
| legislation that will safeguard holders
of life insurance policies from IMPOSE
| ton from which they have suffered in
the past. and to prevent the diversion
of their funds for the purpose of elect
ing candidates to political offices and
lay a restraining hand upon Wasteful-
ness and extravaganza.
~ committee of Insurance Commits
| s;oners of which the Commissioner Of
this State was q member, after pains
| taking consideration. has reCOmlnend-
ed certain measures which | recon-
mend to you. calling special attention
! to the advisability of legislation on the
following subjects:
Establishing standard forms of
policies which may be issued by life
| Insurance companies. and certain OBJ
ligatOry provisions which must be in
ali policies.
The regulation Of annual arportion-
| ment and accounting by life insurance
| companies. both as to future policies
and past policies.
1.-THE prohibition of diversion of
funds for political purposes.
"Regulation of Investments.
~"Requiring policies to contain the
entire contract.
Regulation of salaries and limiting
| the amount of salary that may be paid
any one person to a certain mximum
mount.
Regulation of disbursements.
THE defining of items to be report
ed in the annual reports Of insurance
] companies.
I'm addition to measures recon-
mended by the committee, | concur
in the recommendation OF the Insur-
| anCe Commissioner of Tennessee that
an act be passed requiring companies
F; to invest within this State a ratable
| per cent. of reserve maintained on pol
icies held by citizens of the State
There has been criticism of the
! Corporation Commission-(and some
! of it observation-disclosures it has not
compelled the railroads to provide
safe roads and render decent service.
Tho Legislature ought to do all that
it can directly to afford relief and
then give additional power to the
| Corporation Commission. If it fails,
then the blame lies at the door of the
| Legislature, and not the Corporation
] Commission.