Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-08-07
LAW IS AFTER LLOYDS
Freak Policy Writing May Be
Ended by Legislation.
"POLICIES ARE CANDLES"
New York Insurance Men Object to
Curious Methods.
STATE AUTHORITIES AT WORK
Bryan Election Risks Are Regarded
as Vicious Evasion Of Ex-
listing Laws.
STATE AUTHORITIES AT WORK

NEW YORK, August 7.-Attention
| which has centered on the Lloyds Of Lon
don through the publicity given to insur-
ance placed in New York against Bryan
| election. and more recent reports Of f1nan-
| cial difficulties among some Of the Lloyds
underwriters has focused the resentment
| of regularly incorporated New York in
surance companies against the invasion oil
| their field by Lloyds into movement to
draft legislation which will make impossi-
BILE the writing of Lloyds policies in this
state.
The New York state laws forbid the
| writing of insurance by any but regularly
| entered companies. strictly safeguarded
by state laws. except In the case Of extra
insurance which New York companies re-
fuse. These extra risks may be placed by
licensed agents under the law, of whom
there are about fifteen in the state with
outside companies.
1t is contended by New York insurance
men, however, that the representatives OF
Lloyds underwriters have found it easy
to evade the legal restrictions in regular
insurance, particularly in the field of au-
tOmobile risks and the bonding of bank
and other responsible employees.
State Authorities at Work.
The state insurance department has al
ready been working on these evasions of
| the law. Daniel T. Gordon. acting deputy
superintendent of the insurance depart
ment, said yesterday that the district at
torney has under consideration the cases
of certain brokers who have been taking
insurance for Lloyds.
President Joyce of the National Surety
Company added to this that loopholes in
the state law of which advantage has
been taken by Lloyds representatives
here would be closed up by bill now
session of the legislature. The provisions
of this bill, Mr.. Joyce said. would put an
end to the gambling policies now being
placed in New York with Lloyds agents
by making it misdemeanor to sign this
class of contracts in New York.
Mr.. Joyce was bitter in his denuncia-
ton of the practices Of many o. the
Lloyds' underwriters.
THAT these men are gamblers in the
most vicious form under the guise of do
ing an insurance business has long been
the opinion of legitimate insurance men,"
said Mr. Joyce. IF any American COM
pany issued such policies as Lloyds has
written against the election of Mr. Bryan,
which are equivalent to betting at odds
of from S1a to 1 up. or II any American
company undertook to insure against
rainy weather on the day of the big rae
ing meet. or. in fact, to write such poll
cies as these for which Lloyds is famous
the state authorities would come down on
that company fast enough. Yet these
men in London, working under none Of
the restrictions or guarantees Of solvency
with which the state laws surround the
companies here, are permitted by various
subterfugeS directly to compete in this
territory with regularly incorporated COM
panieS.
The story printed concerning the finan-
cial condition of some of the Loyds' un-
derwriters has led to careful inquiry by
New York brokers. who have been writ
ing Lloyds' insurance. One Of these firms
doing a large business with the London
society, received this cable dispatch yes
terday in answer to a query as to the ex-
tent of the trouble:
mo syudicate insovent Only three
men ST. ped in syndicate in question Be-
1--we confidence of biggest English in
irerS.'
T.isapprehension of Conditions.
The .ssible effects of the embarrass-
ment of single Loyds' syndicate has
led to much misapprehension among in
surance men Of New York, where the ira
ditional soundness of the Loyds' under
writer's has been accepted without ques-
ton and without exact understanding of
the Lloyds' organization. One Of the best
| informed insurance men In New York un-
dertOok Yesterday to explain wherein the