Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1908-12-09
SOLICIT
IN WISCONSIN
GENERAL PASSES ON
CONTRACT OF UNITED STATES
OPERATING COMPANY.
ALSO OBJECTS TO POLICY SUB
MITTED FOR FAILURE TO
COMPLY WITH LAW.

The United States Operating COM
pany, a state of Maine corporation
with which former Insurance Com
missioner Zeno M. Host is connected,
will not be permitted to solicit life
insurance in Wisconsin for the United
States Life Insurance company.
This determination came about yes
terday when Attorney General Frank
L. Gilbert submitted to the insurance
department an opinion upon the ques-
ton, together with others.
Commissioner Beedle referred to
the attorney general policy asking
for an opinion as to the legality of
the following clause which is part
of the policy of the United States
Life Insurance company:
Expense of management limited.
The expense under this policy shall
be limited to the loading provided for
that purpose in each premium pay
able thereon, together with any NOR
tally savings of the first policy year,
except as hereinafter stated"
Attorney General Gilbert submitted
an opinion upon this particular ques-
ton and others related to the matter
as follows:
From a reading of the several
statutes relating to expenses, it ap-
pears to be the legislative intent that
the only expenses on which gains on
mortality may be applied are for med
ical examinations and inspection of
risks. The balance of the gains or
savings on mortality should, l be-
lieve, go into the surplus and innure
to the benefit of the policy holders.
'The clause submitted is therefore,
in my opinion, Objectionable insofar
as it authorizes the use of mortality
savings for expenses other than for
of risks.
You also submit for my opinion
the validity Of contract between
the United States Annuity & Life In
surance company, a corporation of
the state of Illinois, admitted to do
business in this state, as am in
formed, and the United States Oper-
ating company, a corporation OF
Maine, whereby the operating com
pany is constituted the general agent
of said party of the first part with
full power and authority to represent
said United States Annuity & Life
Insurance company in the soliciting
of insurance, to conduct its agency
of, and to employ and discharge
agents and solicitors for the purpose
aforesaid, from time to time, and to
continue as such general agent with
all the powers and rights hereby con-
ferred, for term of thirty-nine years
Il am informed by you that the
Operating company contemplates act
ing in this state under the powers
conferred by said contract and it is
to this phase of the question only
that this opinion pertains.
Section 1955x-1 provides that no
corporation or stock company shall
be licensed as the agent or repre-
sentative of any life insurance com
pany or association in soliciting, sell
ing, or in any manner placing, life
insurance policies or contracts in this
state
This statute would absolutely pro-
hibit the licensing of the United
States Operating company as the
agent of said insurance company in
this state, and it accordingly follows
that the contract is void in this state
insofar as it is in conflict with the
provisions of said section