La Junta tribune., 1908-10-24
How Insurance
Is Supervised
. in Colorado
THE REPUBLICAN IDEA OF coRPo.
RATION REGULATION PUT
INTO PRACTICE.

years ago 1t was n confused patch
work consisting chiefly OF conflicting
amendments. At that time the pres
ent head OF the Colorado insurance de-
partment, Mr.. L. F. Rittcnhouse, care
fully compiled the laws. benefitting by
the experience Of the various states in
the Uaion. and on July ]. 1907, the new
moA1 code passed by the legislature
was put into effect
This law requires the commissioner
to examine companies to see that they
are obeying the law and that they are
solvent. 1t authorized hin to publish
any Information regarding insurance
companies which will be Of benefit to
the public.
Insurance Lawn Enforced.
The best laws are OF no value unless
theg are enforced. To enforce laws re-
kricting the privileges of corporations
Naturally brings strong opposition from
them. In the enforcement OF the insur
ance laws the companies affected and
the insurance press have from time to
time severely criticised the Colorado
commissioner.
These laws. while entirely fair to
the corporations were not made to
please them. hut to protect the public:
and the Republican administration In
this important department has en-
forced the laws vigorously and fear
lessiy without regard to whether or not
the laws pleased those who had been
violating them.
An idea may be gained of the extra
ordinary efficiency and activity Of the
insurance department and Of the great
value and protection 1t has been to
the poticyholders by noting the follow
ing facts:
Splendid Record Of Supervision.
During the three years In which the
present commissioner has been in
charge Of the state insurance depart
ment, thirteen insurance companies
have had their licenses revoked or re-
fused. These companies ranged from
without a capital to the big Maryland
Casualty Company. with its millions.
These revocations were all made after
Investigation Of the company's affairs,
which showed them either insolvent or
with m impaired capital. or guilty Of
violation Of some other insurance law.
Twenty other companies. many OF
Ubsm while under inquiry by the de-
4 -eSArtment, have, during the same per-
iod. ceased doing business or with
drawn from the state because of i'm
proper practices. insolvency or failure
to comply with other laws. OF these
thirty-three companies which have left
the state "for cause" ~ a result Of the
viGoroas supervision by the Republi-
can administration. nine were small as
sess0ent accident and fire companies
operating without capital. and which.
with . few exceptions. were operat-
ing In IN irregular manner.
irregular Assessment Companies Put
Out.
Tho agents Of these small companies
wouiA 60 to the small country and
moaatain towns of the state and &C.
euro business largely by misrepresen-
tation from class Of people who were
poor md could little afford to lose their
money. Such companies invariably re-
fused On one excuse or another. to pay
tAeir claims. This class Of companies
has been entirely eliminated.
6svsa Of these thirty-three compa-
niles were doing u large business and
enjoyed . reputation for solyency and
responsibility. but the vigilance Of the
tColsraAo department discovered the
fact tAat their capital was impaired.
Foar companies which were found
,Fith Impaired capital. made good the
6efi0it and were permitted to remain
. to state.
Tho following are some Of the very
important achievements Of the Colo
raAe Insurance department which have
attracted wide attention and very
favorable comment:
oeock Schemes eliminated.
TAs practice Of lacking on to life
contracts stock speculative schemes,
and -speciai contracts" wherein fab
uleus dividends or profits were prom
fssl 70 induce people to take insur- !
anoo, was broken up by the Colorado |
department after long fight One Of
The large companies OF the East started
n agency Of this kind in Colorado. -
lecting Deominent men ~ directors.
AltAossh operating under tho old
dsesstive laws. the insurance depart
nsat sscceeded in breaking up the
and today life insurance II con-
dusAsl = Colorado on clean lsgid-