The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-10-27
State After Insurance Agents
With Delayed Policies.
Agent and Not the Company to
Stand Punishment.
SAVING THOUSANDS.
Policy Purchasers Well Pro-
tected by State.
James Murphy, of Topeka, Deep
in Trouble.

If the state insurance department
with the help of the Kansas life insur-
ance companies, are able to put their
claws on a certain James Murphy who
has been selling life insurance policies
over the state. new chapter of the
session laws of 1909 will be tested and
one of the most important additions to
the writing of life insurance in this
state will have been made.
James Murphy, who has been travel
ing for the Bank Savings National Life
Insurance company of this city, recent
ly worked one of those bunco games
that has been the means of robbing the
people of Kansas for a number Of
years. He sold an Anthony man a
policy. got his personal note, sold it to
a disinterested party, fixed up the
policy to suit himself and skipped the
country. In doing this he has violated
one of the new acts of the state legis-
lature and one Of the important &C
lions of the state insurance department
Chapter 1853 of the Kansas insurance
laws says:
1T shall be unlawful for any insur-
ance company or corporation or any
agent thereof who shall have accepted
premium notes in payment for policies
of insurance, to sell or assign said note
or notes to innocent purchasers prior
to the delivery of said insurance policies
to the insured"
In providing a penalty for the viola
ton of this law the chapter reads:
Any person violating any of the pro-
visions of section 1 of this act shall be
deemed guilty of a misdemeanor, and
upon conviction thereof shall be pun
ished by a fine of not less than one
hundred dollars nor more than five
hundred dollars, or by Imprisonment in
the county Jail not less than thirty
days nor more than six months, or by
both such fine and imprisonment"
Unlawful to Deliver Policy.
This shows that it is unlawful to de-
liver the policy after the arrangements
have been made. It leaves too much
room for a failure in examination, a
failure in the promises of the alleged
policy and a dozen more eccentricitieS
that might occur without the protec-
ton of the note. Not until last year
when State superintendent of Insur-
ance Charles Barnes followed up the
matter was the state able to condemn
this sort of a deal and since then every
state in the west has taken up the mat
ter, following directly the laws brought
out by the insurance department of this
state.
Since then the insurance companies
have also Joined the crusade to catch
- work their schemes on the people
of the state. Mr.. Barnes figures that
thousands of dollars have been OBJ
tanned Illegally from the people of Kan
sas and much more from other states
before this law went into effect. Bv
this law all of the states hope to save
their citizens millions of dollars every
year.
The insurance department of the state
has cancelled the license of James Muir
ply. He did business in Topeka under
the claim that he was a resident of this
city, but 1t is supposed by the officials
that he is nonresident of this state.
He was working for the Bank Savings
Nationa, Life Insurance company of
this city of which David Mulvane is
president. He sold policy to a man in
Anthony, Kan, and failed to deliver the
policy until he had sold the note and
skipped. The insurance company had
to make up the change in the policy
Many Letters Received.
Mr.. Barnes said this morning that the
state insurance department was receiv-
ing hundreds of letters from people over
the state who have been swindle0 in this
manner. The state and the insurance
themselves have combined in
an effort to throw the agents out of
Kansas and a double penalty has been
provided. An agent not only is liable
tC fine of not less than 500 and more
than $500, but Imprisonment in the coun-
ty jail for from thirty days to six
months, but he will not have the sup
port of his company in the fight. For
rnerly the companies were made to stand
responsible for such acts. but through
superintendent Barnes the legislature
passed the following chapter:
1T shall be unlawful for any agent
Of any insurance company to in any way
to the insured the condi-
tons and settlements contained in any
contract for fire. life. casualty or other
class of insurance; and any person or
persons violating any of the provisions
OF this act shall be deemed guilty of a
and upon conviction
thereof shall be punished by fine in
any sum not less than one hundred dol
lars nor more than five hundred dollars,
or by Imprisonment in the county Jail
not less than thirty days nor more than
six months, or by both such fine and
i'm prisoament."
The capture and conviction of James
will settle once and for all. the
rights of the state in this matter and
will serve as a great example to other
states which have followed out the Kan
sas points of the law and attempted to
enforce them. 1t is a most important
item to the insurance buying people of
K ansas and to the companies and state
as well.