The Idaho Springs siftings-news., 1908-10-24
How Insurance
D Is Supervised
in Colorado
THE REPUBLICAN IDEA OF coRPo.
RATION REGULATION PUT
INTO PRACTICE.

WOTh cOuSlSllHS CnleIly OF COnInct1ng
amendments. At that time the pres
ent head of the Colorado insurance de-
partment, Mr.. L. E. Rittenhouse, care
fully compiled the laws. benefitting by
the experience of the various states in
the Union, and on July l, 1907 the new
model 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 him to publish
any information regarding insurance
companies which will be of benefit to
the public.
Insurance Laws Enforced.
The best laws are of no value unless
they are enforced. To enforce laws re-
etricting 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, but to protect the public;
this important department has en-
forced the laws vigorously and fear
lessly 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 policyholders 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
the little assessment fire association
without capital to the big Maryland
Casualty Company, with its millions.
investigation of the company's affairs.
which showed them either insolvent or
Dwith an impaired capital, or guilty Of
violation of some other insurance law
Twenty other companies. many OF
them while under inquiry by the de-
partment, 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" as a result of the
vigorous supervision by the Republi-
can administration, nine were small as
sessment accident and fire companies
operating without a capital. and which,
with few exceptions, were operat-
ing in an irregular manner.
Irregular Assessment Companies Put
Out.
The agents of these small companies
would go to the small country and
mountain towns Of the state and Sc
cure business largely by misrepresen-
tation from class of people who were
poor and could little afford to lose their
money. Such companies invariably re-
their claims. This class Of companies
has been entirely eliminated.
Seven Of these thirty-three compa-
MES were doing a large business and
enjoyed a reputation for solvency and
respectability, but the vigilance Of the
Colorado department discovered the
fact that their capital was impaired.
Four companies which were found
with impaired capital, made good the
deficit and were permitted to remain
in the state.
The following are some Of the very
important achievements of the Colo
RADIO insurance department which have
attracted wide attention and very
favorable comment:
Stock sehsmes Eliminated.
The practice of lacking on to life
contracts stock speculative schemes.
and special contracts" wherein fab
Used to induce people to take insur-
ance, was broken up by The Colorado
department after long fight. One Of
the large companies of the East started
an agency of this kind In Colorado, Sc
lecting prominent men as directors.
Although operating under the old
defective laws, the insurance depart
ment succeeded in breaking up the
scheme. and today life insurance is con-
Quoted in Colorado on a clean legiti-