The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1907-01-12
FAKE HAIL |NSURAN'E
COMPANIES ARE
BARRED
Law Against Them Passed
-Four Years Ago is Effective
Says Cooper.
SURETY AGAINST FIRE
Many Corporations Doing Bus
mess in state-Policy Hold
ers' Interests Protected.

State Insurance Commissioner E.
G. Cooper, who has been very busy
lately preparing his annual report and
having bills prepared to be presented
at this session of the legislature, will
not advise any further change in the
hail insurance laws of North Dakota.
For years, North Dakota was con-
sidered to be a gold field for fake
hail insurance companies. In 1903
a law passed by the legislature against
these kinds Of concerns, and the re-
suit has been the barring from North
Dakota of all these concerns. Mr..
Cooper believes that the present law
Is entirely adequate.
In speaking of fire insurance COM
panies, Commissioner Cooper says:
"The law governing the organiza-
ton of Domestic Stock Fire insur-
ance companies seems to me to fully
cover the situation, and fully safeguard
the interest of patrons, as we'll as
those of the corporation, with two ex-
ceptions. think section 4427 of the
Revised Code of 1905 should be amend
ed so as to provide that the unearned
premium reserve should be figured
at so per cent, instead Of 40, on all
annual unexpired risks and pro rata
on term risks unexpired. This is
what is required in nearly all of the
states.
II also think that provision should
be adopted whereby, when the capital
of the, company has become impaired
by reason of excessive losses, or an
application for a receivership has been
made, the court could direct that the
amount of the unearned premium re-
serve of the company, should be placed
in the hands of the Commissioner of
Insurance, of the state in which the
company is organized, to be returned
to the existing policyholders by REIN
surfing their policies and paying the
premiums thereon; and that any
amount remaining should become a
part of the assets of the defunct COM
pany and should be turned over to
the receiver. This unearned premium
reserve is what the name indicates,
and is "unearned" and does not prop
erly belong to the assets of the COM
pany, for the payment of losses until
the unexpired policies have been either
cancelled and the return premium
paid, and the risk reinsured and the
premium thereon paid to expiration.
I recommend that bill embodying
these provisions be drawn and sub
mitted to the legislature.
II have no further changes to sug-
gest in the present law. The same
is true of the law governing the adj
mission of foreign stock fire insurance
companies to transact business in this
state. The present law, 1t seems to
me, fully protects the honest claim
ant. No complaints have come to this
department of any of this class of
companies having failed to promptly
recognize all legitimate claims and
make prompt settlement thereof. In
the matter Of rates the tendency seems
to be toward lowering of the same,
Notwithstanding the heavy column of
losses from CONGREGATIONS during the
past year. believe that the present
laws are broad enough and sufficient
ly comprehensive to afford protection
to the legitimate interests of all con-
cerned, and do not desire to recon-
mend any additions or changes to the
present law governing this class of
companies"