The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1909-04-16

Limits the GlSkS or ll"plltleS III
j. proportion To the paid-up cash
:. capital and surplus !:
Utah s new office Of insurance com
missioner. created by the last legIsla-
turc, will be located up town some
place. but Just where is not yet known.
Colonel George j. Squires, the commls-
sioncr. is busy inst now gathering up
and disposlng of the fag ends of last
years business, and as soon as he gets
This attended to will cast about him for
an office. For the present tho office
will remain III the secretary of state s
office.
In view of the newneSs of the bill
it might not be amiss here to give some
of The more important provisions IN
detail. To begin with. the insurance
commissioner term Of office is four
years, beginning March /, and the com
missioner himself is subject to removal
for neglect Of duty. breach OF trust, IN
competence or malfeasauce upon reason
able cause shown.
The bill gives the commissioner pow
CT TO employ such clerical help from
time 10 time as may actually be ncces-
sary, and an actuary whenever neees-
sary; but neither the commissioner or
the actuary. nor any other employee OF
the department.. shall be III any manner
employed by any insurance company
doing business in this state. There is
nothing in the law barring any of them
from being a policyholder in any in
s,irance company, though. The records
Of the insurance commissioner 5 office,
of course, are public property, and the
commissioner Is required 10 make a
report 10 the governor annually.
Under g now IuOr tno ropmj
shall examine and inquire into viola
tons of the insurance laws of this state
or ascertain if the laws are obeyed
or examine into the financial con-
dition or management of any company
doing business here; may visit. or cause
to be visited, the head office in the
United States OF any domestic or for
cjgn company. first obtaining the writ
ten consent of the state board of eX-
amnerS.
Cost of Examinations.
The cost of examinations of compan-
les with headquarters outside the state
Is to be paid by the companies, but
when the companies neglect, or refuse,
to pay the expenses, the amount shall
become first lien upon tho assets or
other property and the attorney general
may sue 10 recover the amount.
The commissioner may also examine
into companies upon the request Of five
or more policy yholders, representing at
least 100000 insurance, upon their
making affidavits with specifications
OF reasons therefor. and for all eXami-
1Iation purposes the commissioner shall
]ave free access to all books and pa.
pers and compel the production of them,
by attachment if necessary, aud may
Fummon witnesses and administer oaths,
and any witness testifying falsely shall
be deemed guilty Of perjury aud pun.
,shed accordingly. Persons refusing TO
appear and testify shall be deemed
guilt Of misdemeanor. and upon con
viction shal! be fined not 10 exceed
900 or imprisoned three months III tho
connty jail. or both.
The result of such Investigations the
commissioner shall publish in the news
papers If any company is foupd 10 be
in an lnsound or iuso!vcnt condition,
or il is found that it has violated the
Jaw. the commissioner NAV revoke its
certificate Of authority, but before do
ing so must give the company fifteen
DAYS IN which to show cause why such
action shall not be taken. ANY COM
pany whose certificate is revoked NAV
appeal TO the district court, and from
thence to the supreme court, as MAY
The commissioner. il dissatisfied with
fhe findings. In the district court the
company is entitled to jury trial.
The law requires the insurance eom.
panies TO pay. in addition to tho fees
10 per cent of the gross premiums. less
mo returned premiums, into the state
treasury on or before March ]; pro
Tided thaJ any property tax paid may
be deducted, the taxes and fees pro
Vlded by the law TO be in lieu Of all
other taxes, fees or licenses.
Paid-up Capital.
The duplication Of corporate name.
is prohibited, and no joint stock in
surance company is permitted to do any
business In this state unless il is DOS
sessed Of an actual paid-up cash capi
tai and surplus as follows:
j; Companies with territory not lin.
lted 10 Utah, a capital of not less thar
TWO hundred thousand dollars (s20O, 900
Ilot less tnan one huncred thousand dol
lars (Sl00, ,t00) ~
q Companies, the business OF which i
limited TO Utah only a capital of not les
than nifty thousand dollars (S50, ,000) an,
is p net surplus over all liabilities OF no
D. no mutual or mutual assessnoD
nre insurance company shall nc per
united TO do any business in this stat
follows: ="
4 Companies with territory not lin
..eq 70 tan, cash assets of not less tia
aloo:o9o Companies whose business
united to Utah only. cash assets of no
less than $4,000. such assets IL, oc ne
eIier dcductine all liabilities other tha
reinsurance rcsnrYe.
= No joint stock Insurance conpan,
ZSi ID oil