The Democratic advocate., 1909-02-12
ADDRESS OF
Hon. BENZ. F. GROUSE,
INSURANCE COMMISSIONER,
Before the Baltimore Life Underwriters
Association, Feb. 9, 1000.
Mr.. Toastmaster: /:

hclently broad not to hamper in my remarks, but
out OF consideration for you have endeavored to merit
your comendaon for brevty even if there be nothing
else about the address to win your appreciation Oc-
cason Of this character usually call for wit and humor
If the speaker fortunate enough possess the power
to amlse but this topic does not have witty or humor-
ous appearance, and if it did it would have been
most terrible mistake the part of the Committee of
this Association to have selected to do the funny act
At the close of the last session of the Legislature
the Governor appointed number Of Special Commits
sons to consider various matters Of interest the people
OF the State and among them the Insurance Laws
and other matters relating to insurance did think
then, nor do believe, that the Governor had in
mind any sweeping changes in present laws but that
certain notifications might be suggested that would be
both beneficial and helpful to all and that our Statutes
might be codified and arranged in convenient
form What views or ideas may be entertained by the
other members of the Commission to their labor or
what the Report to His Excelency the Governor NAV
contain shall not attempt 10 state at this time as /
have not discussed with any of them the matters we are
to consider and therefore any opinion along that line
from me would be the speculation and guess work
Whatever shall say this evening will be merely the
preston OF my experience gathered in the time /
have been connected officially with the Insurance DE.
partment.
diet as result Of the deliberations of the Commission
and that IL that their suggestions will be the side of
SANITY and conservatism am proud TO say that such
course has always found favor IN this State Our people
have always stood for moderation and conservative action
as against mmoderation and radcalin Notwithsiand.
ing the fact that the legislature Of this State has had two
s'nSolA since llc investigation OF the Armstrong
mttec began practically legislation ON the subject Of
insurance has been enacted. but ON the other hand
there has been desire and purpose 10 wait until real
conditions were known before any action was taken
And who can doubt that this was the wsest course
For while there evils to and remedy in the
life insurance business throughout the country and in
ths state much Legislation that enacted elsewhere
win the idea of betterng conditions has failed 10
remedy the troubles and destructive rather than con-
structve and helpful in It's effects on the general bust
ness, without bcneitng the special subject legisated
upon.
In my Report for the year 1907 10 Hon Edwin
Warhed, who was then the Governor Of the State used
these words:
II do not share the opinion that legislation is
the only thing needed TO correct many OF the evils
that occurred in the management Of Insurance Com.
panies IN the past ~, no matter how perfect the
law may oe, unless those who are charged with the
management of the business are honest there will
always be found methods and ways of evading the
requirements OF the sirctes legislation. This il
very clearly demonstrated by conditions which ~.
list at this time"
If desired change or modification in them now
u would be that might add 10 them strength and ygor
lou can no more legslate honest who dishonest
than you can make sinner righteous by passing nn
Act of the Legislature The penalties prescribed may
induce them by fear of punishment avoid the appear
ancc OF evil or hide their nefarous work 10 well that IL
may not be found out az the time il committed but they
are none the less dishonest than before The members
OF corporation association should not attempt 10 east
upon the State the performance Of their individual re-
sponsbles, and one of those duties is the selection 81
proper officials 10 their business affairs when
II comes 10 looking after matters that the individual is
unable to attend TO, and thereby would suffer Jury
then IL the duty of the State TO render all the assist
anee necessary or proper and just a this point and on
such matters should the States regulation begin
To illustrate, | do not think the State has any
right whatever TO fix the salaries Of officials or com
pensation TO agents or clerks This should be done
by the Directors other proper officers Of the companies
The State without any such power and If the power
were given it would be in position to attend 10 or
perform the duty either intcigently or with profit or
aHfnH IN ali
detail in the business affairs Of corporations should be
left TO their officials but there should be the fullest
publicity possible given TO every performed by these
officials The Insurance Commissioner should be given
the amples powers TO investigate and examine in the
most careful manner into every transaction in order
that the financial condition of the Company might be
fully ascertaned and its sovency be maintained and the
public be informed fully to receipts and disburse
ments For violations Of the law by officers of corpo
ration the penalties prescribed should fall upon the
guilty individual and not be visited upon the inno
cent members or stockholders.
The most complete record of every transaction should
be made and kept by the corporation all times so that
when examinations made by the Insurance Commits
sioner he may be able derive from those records all
information necessary without calling upon its
officials to explain
SO frequently entries are deficient and it has been
known that where the records failed to disclose exact
and full informatonthe memories OF the persons who
were charged with the conduct of affairs were extremely
faulty in supplying that which had been omitted and
therefore, the law should insist upon full and complete
record OF every transaction.
Much has been said in favor of Standard Policies
and Standard Provisions. have never been able to
see that any real benefit would result from such forms
while ON the other hand it harmful to both assured
and assrer in that nerferes with the right of private
contract between the parties and prohibits the compan
les from being progressive granting liberal terms and
conditions to pocyholders While those who favor the
Standard Policy may reply that different results will
follow II the companies are permitted to frame these
contracts yet the experience of the past quarter of
century has clearly demonstrated that insurance
haan Ihaeo1 -. 41. e