The Montgomery advertiser., 1908-08-23
MIR. JULIAN
 Is ENJOINED Guarantee Life Resorts
 to Court. coNsrRUE ANTLREBA1E LAW Insurance Commissioner Enjoined From Interfering with Agents. Action is Result of Cancellation of Company's ana Agents licenses Friday. By Commissioner
 Julian
coNSTRUE ANTLREBATE LAW

The Guarantee Life Insurance Com pany, of Houston, Tex, as was pre- dicted in yesterdays Advertiser. has carried the matter of the cancellation of their licenses to the courts.
 Counsel for the foreign insurance City Court of Montgomery Judge A. D. sayre presiding. an injunction against Insurance Commissioner Frank N. Ju- Han, restraining him from interfering in any way with the business of the company or it's agents. This means. In all probability. the beginning of long chain of litigation which will result in q construction by the courts Of the State. of the application of the Alabama insurance law which isN designed to prohibit the issuance of what are known as "advisory board" or spectak contracts of dnsuranee.
 It will be recalled that Friday Com missioner Julian cancelled the com pany license of the Guarantee Life and also hhs licenses of the several agents doing business in Alabama. The agents were alleged to have violated Section 4579 of the Code. which prohibits re- bates by any agent or company or dis crimination in favor of any policy-hold- CTS of the same class.
 It Is believed that the Insurance Da- pertinent will rather welcome con- StfUCIl0n or AHG A1W UIA lAAAo nAAJCIts AHS various constructions that have been placed upon the section by the Tnsur- ance Commissioners of the State and by the Attorney General have always implied more or less doubt as to the application of the act Attorney Gen. eraI Garber last year rendered an opin~ ion to the Insurance Commissioners to the effect that such contracts of insur- ance as were being issued and sold by the Guarantee Life should not be ap- proved by the Department or allowed to be sold until their legality had been proven.
 It Is believed by the members of the Alabama Dspartnesnt that no other company than the Houston Life has in- sisted on selling this character of bus mess since March 1, 1907. Since the opinion of the Attorney General the Commissioner has ruled positively that if evidence was secured against com pany or the agents being guilty of seIl- ing ''board' contracts. the license of such company and it's agents would ba immediately cancelled
 Contracts Sold Elsewhere.
 The contracts said to be sold bv the G2arantee Life are being sold in sever al other States, being chiefly thoar which have no antl-rebate laws. The enemies of the special policies declare that they are equivalent to granting ra- bates of premiums, giving preference 10 the holders of such contracts over tn eother members of the same class. It ts alleged by the Commissioner of In- surance that the Guarantee Life has sold several of the policies in the last few months in Alabama.
 The style of contracts complained Of by the Department is usually stip- uIation by the company that in con- sideration of the policies then offered for sale being bought by the prospect i've buyer and his performing certain services in getting other policyholders of the ordinary classes, he gets credit of so much money on his future prem iums for every $I.000 of insurance written thereafter by the company in that State. or in some instances, in the United States The opponents of the contract claim that such services as the holders of the contracts are required to