The Montgomery advertiser., 1908-09-22
ACTUARY AND
 FIRE MARSHAL Are Recommended by Commissioner Julian. HELP FOR INSURANCE OFFICE Annual Report of Insurance Depart
 ment Shows Growth. No Other state in Union Does Business Cheaper Than Alabama--Life
 Companies in Alabama
 Thrive.

The most voluminous report ever made by the Department of Insurance of Alabama to the Governor was is- sued yesterday in printed form by Commissioner of Insurance Frank N. Julian. The report covers the opera tions of the Department. for the year ending December 31st. 1907, and also contains important data about trans. actions of the department up the time of filing the original report with the Governor. or April 30th. 1908.
 The contents were carefully prepar- ed by Deputy Insurance Commission CT A. c. Sexton. who made a special effort this year to expedite the issu- arice of the volume to the public. Ey-. cry recommendation of Deputy Sexton Is concurred in by Commissioner Juli- an.
 On account of the wonderful growth of the Insurance Department there is a strong recommendation for addi- tional clerical help In the proper at tention to its affairs. as well as | pronounced appeal for a,n experienced by Deputy Sexton that the work of the Department has grown in the past ten years 10 five times the business transacted at the inception.
 The enormous work necessary for the proper attention to the innurner- able detail in connection with the col lection of the large amounts now com ing in from insurance companies, and the auditing of their annual state ments, the preparation of the annual report and disposing of the new heavy correspondence and many other mat tePs that necessarily engage the at- tention of the Department" reports Deputy Sexton, Ifs done at present with the same number of persons that disposed of the business of the De- partment in 1898 when the work was about one-iifth of what 1t is today. with the exception of half the time of one stenographer which was pro- vided for the Secretary, of State and insurance department by the Legisla- ture of 1907"
 The Deputy Commissioner has the following to say with reference to the need of an actuary:
 "Tne rapid development of the De- pa artn1ent into one of its present mag nitude makes 1t an absolute necessity that the services of an experienced ac- tuary, and sufficient additional clerical assistant be provided In or der that tho many important matters, aside from collection of licenses and taxes. be given the broader attention required. in view of the increased du- ties devolving upon the Department. In brief the office should In addition to the Deputy Commissioner be supplied with an experienced actuary, an addi- tional, clerk and stenographer. The of business and it's importance to the State, to the insuring public. and to the companies that come into the territory require it."
 Small Expense Ratio.
 As further evidence of the economy with which the Insurance Department Is conducted attention Is called to the expense ratio of Alabama as com. pared with other States. There are i've States of the Union operating on ln expense which bears to the gross receipts of the ofiiee a ratio of eight and one-half per cent. or less; six of over three and one-half per cent. and up to i've per cent; fourteen of five per cent. and up to ten per cent: i've between ten and twenty-five per cent; Eve between twenty-five and fifty per sent: one over fifty per cent.
 The expenses of the Alabama Dc. partment for 1907 were a little less than three and one-half per cent of he receipts and 1t is estimated by Deputy Sexton that for 1908 the ratio will not exceed two and one-half per sent. This prediction is based on the 1eavy increase of receipts by virtue of .he increase in taxes on premiums.
 Regarding suspicious firms in the past over which the Department has in the matter of ordering m investigation, 1t is the opinion of Deputy Sexton that there have been entirely too many fires and there is undoubtedly too little regard paid to measures which could md would be corrected through such an ofice as that of Fire Marshall"
 "In many States,'' continues the Deputy Com missioner. this is consid- sred one Of the most important branch ss of insurance service and I would most sincerely and earnestly urge up- on the next Legislatur the seriousness of the situation and the advantage to be secured by provision for the ofiice of Fire Marshal with necessary power th rough local and county officials over the State to regulate the conditions which are now left to unofficial au- thorities to correct. Such an office sho ouId properly be under the direction of the Insurance Commissioner and an attache of his office"
 Attention Is called to the fact that during 1907 the three Alabama legal reserve life insurance companies did good business Examinations of the