The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1909-05-29

"A normal f1st rate plus percent
age on premiums II the only fair and
equitable method OF taxing insurance
companies. In this way ninety per
cent OF the companies now doing busi-
ness In Alabama would be fairly dealt
with and other companies would enter
the feid, whereas. - matters now
the companies hsing benefited by vir-
tue OF the fact that their enormous
premium income from business In the
state justife6 their payment of the
heavy taxes imposed. The smaller
companies accordingly pay from two
TO ten or more times the amount Of
taxes In proportion 30 business done.
where nxed amounts are charged
for business done. regardless of the
amount. . company doing a large bus
mess naturally pays smaller per-
centage than q company that does a
small business. These Inc quitable inn
positions upon insurance companies de-
mand the serious attention OF the Leg
isiature. The flat rate system Is un-
just the percentage system IL fair"
Other Recommendations.
Among the other recommendations
communicated by Mr.. Julian to the
Governor, many of which came also
from Deputy Commissioner A. G..
Sexton, who has made q careful study
OF the conditions the year past is the
dealing more effectively with unli-
censed agents, with the so-calfed "spe-
cial" or board contracts OF life COM
panies, the passage of o livestock in
surance law which will be more than
an empty shadow. passage OF laws for
more careful regulation of surety In
surance companies. amendment of the
deposit sections OF the law so that
State and municipal bonds not neces-
sarily OF the state where the foreign
company chartered or this State may
be approved but those Of any other
State which may be genuine and good.
Most significant, perhaps. among the
other discussions In the report. is that
affecting fraterna1 orders conducting
insurance departments The depart
ment speaks out on this subject more
frankly than ever. The need for
stricter laws regulating this character
of insurance Is emphasized.
There 10 a crying need for some
laws compelling all fraternal orders
to come under the jurisdiction of the
department" says Mr.. Julian. There
IL a strong disposition on the part of
Of which are doing business in this
State. to cooperate with their ofices
in securing some remedial legislation
for the regulation OF all orders, for
mutual protection. This State is a
free and practically unlimited hunting
ground in which the fly-by-night con-
Germs Of low order seek their prey
and. and 1t. Some simple laws re-
quiring all orders to report to the de-
partment, TO be subject to official SUI
pervision and required to maintain cer-
tain standards, would go rari towards
correcting present unsatisfactory con-
dition.
Some Special ONES.
In brief the following other recon-
mendatfon are made:
To provide definite penaltis for in
suring In unauthorized companies.
To make IL the duty of the COM
missioner to report offenses to circuit,
city, or county court solicitors. and
empowering the commissioner to have
warrants issued in Montgomery coun-
ty for offenses In any part of the
State.
To better define credits to insurance
companies for reinsurance and return
premiums.
To provide for the publication Of
insurance company statements in
papers OF the State. and fixing the
time in which such statements shall
be published.
To provide In a definite way for the
surrender of deposits to any compa-
MES having same with treasurer of
the State or insurance commissioner
after such deposits have served the
purposes contemplated by the law.
To better regulate deposits of Sc
curities covering reserves on domestic
life company policies and prescribe
forms to be issued In connection with
certifying as to such securities
To prorate annual company licenses
semi-yearly. ~
To provide a contingent fund for
the Department OF Insurance.
To prevent FIRE waste in Alabama
the previous recommendations of the
commi ssioner as to the creation of
State FIRE marshal are made to the