New-York tribune., 1908-01-22
SUPT. KELSEY REPORTS
MOULD CHANGE LAWS.
State Insurance Com panies Losing
Business, He Declares.
ny TeleSraph % The Tribune. ]


zey goes at length into the effect of the Hughes
Insurance legislation, suggesting many amend
77euts and pointing out that since its enaction
there has been decrease in the business Of
New York insurance companies, although he
saws New York has the strongest largest and
best life insurance companies in the world
The Superintendent says that the present pro-
sicion Of these companies in contrast with their
former prestige is a matter Of deep concern to
every citizen" He says that insurance men
have told him that while they were heartily in
accord with the new statutes they have crlu-
cised specific points IN them and have urged
that unless these points we're modifed bY leslS
Isttve enactment 'Frreparabie injury must ne
suffered by the New York life companies" He
calls attention TO the increase in business OF
outside companies and 10 the question. have
they not been benefited by recent legIslaflon 10
the detriraent OF home companies?"
Nj Kelsey recommends the discontinuanoe OF
al forms Of corporations for the insurance ol
domestic animals He believes that the llsul-
znce Of cows horses cats and dogs. not 10 mel
rior donkeys, involves TOO great moral Ho-
srd" 70 be advisable He recommends alie"N
merits Of the Penal Code 10 include prov
<a- the punishment Of insurance officials "ho 90
no. promptly obey the mandates OF me
-7Ant. and thinks the state should pay -or eA
---,-e-;o,e of GONNA MES In general ne again
,s,o-,-n.,ds 4re amendments TO tre lnSul am
- -.-.,5co ~ advocated IN his annual fetoi
fzs- wear. and suggests that as 70 oIli7i -1-
srrerdstorv legislation INSURANCE
themselves viii urge that -. -
7-,e -era-1 goes at length into the Ql0S'i'ii "a
-be valuation OF securities q insurance I1
MES end the advisabtlity q adoPtlng SOME 1'i-
form legislation in regard 70 this matter
n regard 70 the reduction Of business @ the
ME
-, --o7-7- Of & IA 90 600 and carried total
i-e--s-Ce of < 0opoG1o increase o. more than
80 80 ' go over 2Y ths .5icaIg tTat new business
s-ounr=n 70 S4eooo oco had been issleo "a g10 20 6 ooo
frs---anre force amounted 70 >S-o9S-ls-ve'
s-o-Tas-ed vf-h the figures OF 1904 the new business
e-.g-1gs-e ~ jTST-ance in force has decreased
~ - GO Instead OF an average ann1aI gam N
T-;o- = and taciGding ls4, Of about s=3 o,o coo
rhsre has been q net STerase -gllsi-s @ go, 81 q 1aa4
Ts<e insurance companies OF other states DONG
ess n ne STATE aad 90. Ea9 sc Tsc5eS1 @ b3ss o9 fs in
~ sun OF s55e caeo and increased the amount q
- ls5 For Is17 such companies will report new in
sl-sncs spproxinlatng 80. .g',so 2ro an Incresse
- Insurance n force ot S4t-,.s,o CotEIslls LI7
business e The es-s I s3d @ Isl, l Sc e. ~, m n new
business written ana increase Of sSs4,qss9e" OF
sc-zl insurance n force
The Commissioner adds that a whole the
amendments 70 the insurance laws have had
ana VIII continue TO receive the efficient support
Of this department.
Cash receipts for the department during the
fzet year exceeded the disbursements by S2o2,-
30 al which * SOS 565 81 in excess Of the
preceding wear. The annual tax which the state
5-auoses On the gross amount Of premiums re-
-efye5 from business IL the state amounted 70
81 Isl s54 - this year In view of the heavy
burden imposed by this tax Mr.. Kelsey rec
7r1r7ends that companies be released from the
exper=e o. examinations which frequently i'm
pose heavy burdens on them
Among causes alleged as contributing TO the
unsatisfactory condition of New York COM
uauies is an III advised discrimination in favor
II outside companies that may under Section 1o1
issue any desired form OF policy. also further
discrimination under Section 1o2- The Limitation
r. expenses for new business * another cause for
-o-7rIairt by the New York companies. The
df<culrfe= Of administration under Section 30
~ The insurance law prohibiting officers from
hei-z pecuniariIy Interested il transactions re-
ls-ine 70 securities OF the companies are also
So forth a. length in Nj Kelsey's report
The effect Of Section Sc which limits the
amount --hich may be expended for new bust
ness II anv calendar year. Mr. Kelsey says is
ss follows:
Tie eject c< the limitations Of this section Is de-
dared 70 Be calaTntioas IN that aeIcg @ GTealIe
ed -Ferzb- 6erloralfzing the business Of solicit
nz insurance owing n an excessive reduction In
20 .e---@5-- agents Of the custom Of expeoding
from the- own funds for services OF assistants ana
~ res- winch were formerly returned through
increased renewal commissions
The Superintendent congratulates the fire in
surauce companies for having so successfully
worked out their own salvation after the San
Francisco oonhagration. During the year only
fvs companies have withdrawn from the state,
rz---fng with them q capital OF. S1605oOO,
Vt5Ie eighteen have been admitted, with an ag-
zragate Capitalization Of s7-22S.ore. Mr.. Kelsey
recommends that casualty insurance companies
should not be permitted to execute bonds guar
snteeing deposits IN banking companies "here
Iae z.-- total o. such contracts guaranteeing
seposits IN any ore bank is in excess OF ]"
Eer cent n The conpany's surplus and capital
The Superintendent repeats his recoTni1erda-
-r5ns O last rea- IN regard 70 business assess
-7aut corporations and fraternal orders An
srhc q the examination Of the Mutual Reserve
I fe I-y.I-snce Company rs found in the report
f~- 4. recommends legislation preventing the
~eo-ganfzation Of life insurance companies
Whereby The same company may issue ootn lsVel
premium and assessment contracts II -
highly ireo8itable'f says he, that dehclencles
81 teref premium class should be thrown upon
he assessment members whose contributions
under present regulations must grow greater az
tfrGe eIapses.
r,rne- zrecfec and general recommendations
ere made covering amendments 10 the laws
governing surrender values. objections 10 indi-
vidusI bond and mortgage as deposit security
and the Penal Code
II closing his report Mr.. Kelsey commences
highly his own force and its work and recon-
-1ends its Increase. The fuli annual report VIII
he published under five heads this year as
follows. ] Fire and Marine Companies; = Lie
f,-----r-- ~,..,.-- E~;SaTf,v and Surety