The Montgomery advertiser., 1908-06-19
INSURANCE
 IS CUT OUT Great Western Life is Barred from State. COMMISSIONERS BIG RULING Impairment of Capital Stock Given
 as Reason. comn,issioner vandiver of Missouri Ia- sursnce Department Makes Re- port--Ccmmissioner Julian
 Makes Statement For
 Alabama.

Hon. Frank ". Julian. Insurance Com missioner of Alabama, yesterday brought to a head the troubles of the Department of this State and the Great Western Life Insurance Company by ordering that corporation suspended from doing business in Alabama. The suspension will be for ten days, begin ming yesterday and if the company does not come round to the requirements Of this State by the end of that period the
 suspension will be made permanent. The immediate reason for this action of the Department was the impairment of the capital stock of the Great West ern Life to the extent of about $l00,- 900. This fact was communicated to Commissioner Julian by Commissioner vandiver, of the Missouri Department. The company has in force in Alabama more than half million dollars of in- surance.
 1t will be recalled that in the early fall of last year. the Great Western Life Insurance Company, of Kansas City, Mo, applied for license to do busi- ness in Alabama The company pro- posed to write a series of special con- tract policies. The Insurance Depart ment refused to license the company in view of the fact that advisory board, stock sch emes. and 'specials" were pro- hibited in this State,
 The company went into court and secured mandamus from the City Court of Montgomery. and compelled the De- partment of Insurance to issue license. After securing the license. the
 General Agent of the company. and their local attorney, representing them in the mandamus proceeding. insisted that the Insurance Department make a rigid examination of the company, not only to convince the department of their solvency, but to show to the poli- cy holders that the company was in good condition.
 Tn December, 1908, the Insurance Commissioner with Actuary s. H. Wolfe, of New York. visited the Home Office
 In Kansas City for the purpose of ascer- taining the status of the company, and the president of the company very
 courteousiy. but firmly refused to per
 init the examination. claiming that the actuary selected would not give them justice. The Insurance Commissioners then notified the company that the examination must be made or the com pany's license in Alabama would be re- voked. The company, through its
 president, and it's local attorney. agreed
 to have the examination made by an
 actuary of the departments selection.
 They were advised immediately that the department consulting actuary would
 be Mr. S. H. Wolfe, and to this they
 readily consented.
 During the early part of the year the
 Insurance Commissioner, owing to ill.,
 health, could not leave for Kansas
 City. and in the meantime the Great
 Western Agency Company was thrown
 into the United States Court and a re- ceiver appointed. In the proceedings
 of this court it developed that the
 agency company owned nine hundred
 and ninety-one shares of the capital
 stock of the Insurance Company. The court directed the receiver of the agen-
 cy company to separate the Insurance
 Company from the said agency com
 pany, and if possible save the insur-
 anee company. Under these instruc- tions the receiver reorganized the
 agency company. the old officials re-
 signing and new men were elected to