Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1909-01-13
INSURANCE REPORT
OF C0M'R COOPER

Commissioner of Insurance E. 6.
Cooper has published his biennial report
i'll which he takes up the work OF the
department in the past two years and in
which he makes a number of recon-
mendations with reference to changes
in state laws. Mr.. Cooper's recon-
mendations are very interesting and
during the present session it is ex-
pected that a number of them will be
acted upon favorably In part, the COM
missioner says:
"The legislative assembly of 1907
passed some fourteen acts affecting
the business of life insurance. These
several acts referred to are what is
known as those recommended by the
committee of fifteen, which said COM
lnittee was appointed by the meeting of
governors, attorneys general and CON-
missioners of insurance who were called
together i'll the city Of Chicago in the
month of February, 1906. Practically
the same laws adopted in this state were
also adopted and made effective in eight
other states.
ITO put these laws into force and
make them effective has added very
largely to the work of this depart
ment, and we also find that to thorough
ly enforce the provisions of these diff
ferent acts, this department should be
provided with an actuary to properly
safeguard the rights of policyholders
under these laws, and also to see that
the laws are properly complied with by
the companies. l feel that the revenues
derived from this department are sufi
cient to warrant the employment of an
actuary such as would command stuff
Gent ability to properly represent this
department. The revenues of this de-
partment. for the current year amounted
to over $105, 900. This yields to the
state a net revenue over and above all
expenses of the department of every
kind, more than $50, 0O0 We think
that an appropriation for the employ
ment of an actuary at a salary of say
IS, 900 per year, which would enable
him to give to the department his whole
time, would be good investment for
the state, in view of the fact that at
least half of this amount would be re-
turned to the state i'll the way of fees
for examinations. This latter state
ment is conservative, as more exa1lina-
tons would be made by the department
if an actuary were at its disposal to look
into the technical and actuarial side of
life insurance
This recommendation is made and
honestly advocated for the reason that
nearly every other department in the
United States of the size of this one
is provided with an actuary, and for the
further reason that we believe that the
policyholders and people of the state
are entitled to this protection i'll view
of the fact that they contribute prac-
tically the large revenue that accrues
to the general fund of the state in ex-
cess of the cost of maintaining the de-
ment"
The commissioner then takes up the
several laws passed by the legislature
two years ago and he states that the
companies affected have shown dis
position to comply with the provisions
of these laws. There are several changes
recommended in the different laws, all
of minor nature with the exception of
that referring to S. B. No. ia of the
session laws of 1907. This is an act to
prohibit the issuance of non-participat-
ing policies by certain life insurance
companies. Mr.. Cooper contends that
this measure is a discrimination against
the domestic companies for the reason
that they are prohibited from issuing
non-participating contracts in case they
issue participating contracts, and vice
versa, while the foreign companies can
come in here and write both kinds of
contracts where they are not permitted
by the laws i'll the state they are or
gained. Commissioner Cooper be-
lieves that this law, at least so far as
it refers to domestic stock life insur-
ance companies, should be reDealed