The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1909-04-15
SQU|RES GETTING
NEXT TO HIS JOB
New Insurance Commissioner
Is Considering Status of
Certain Companies.
NEW CODE NOW IN EFFECT
DOUBTFUL CONCERNS MAY De
GIVEN UNTIL JUNE.

Colonel George B. Squires, commits
sioLer of insurance, has asked Attor-
ney General Albert r. Barnes for an
opinion with reference to the effective
ness of the section of the new insur-
ance code which provides for the quail
fications of joint stock fire insurance
companies operating within the state
The insurance code, as it passed the
legislature, became effective on APP
prevail This being true, a strict con-
structlOn of the law would mean that
all companies not coming up to the re-
quirements of the insurance code must
Immediately cease TO operate within
the state. Concerning several of these
companies there is some question as TO
whether or not they are now within
the requirements of the law.
One section of the new code provides
that no joint stock fire insurance COM
pany with territory not limited TO
Utah shall be permitted to do any bus
mess in the state unless it has a capt.
tai of not less than $500. 600. and a sur
plus over all liabilities of 100000. Ac-
cording TO the reports of 1908 there
were five joint stock fire insurance
companies the capital and surplus OF
which was less than that required by
the new law.
The question is whether the commits
'sioner should cut off these companies
from business within the state imme-
diately or whether time should be
granted to permit them to come up 70
the requirements OF the law. One COM
pany was only $4,000 short of the re-
quired capital. according TO its last
report. and this deficiency may have
been remedied since that time.
May Operate Until June.
Colonel Squires said yesterday that
there was a disposition TO permit these
companies TO operate until June, when
the semi-annuaI statements OF these
companies Ould show the exact con-
dition Of the business.
The S300,0O0 capital and surplus for
joint stock fire insurance companies IS
only a portion of the requirements
fixed by the new law for such cOmpa-
MES. For companies whose business Is
limited to Utah a minimum capital
and surplus of 100000 is fixed by the
code.
For mutual or mutual assessment
fire insurance companies with territory
not limited to Utah the minimum
amount of cash assets is placed at
800 600. and for those limited to Utah
cash assets. above all liabilities, $4,000.
The minimum amounts of capital
and surplus fixed by the new law are
points now under contention. and an
immediate enforcement would proba-
bly, close the business Of at least five
companies in the state. Some of the
companies viii probably be unable 10
comply with the provisions of the law
and viii have to leave the state. but
others not now within the law are pre-
pairing to increase the amount Of cap
itai and surplus in order to fulfill the
requirements.
Until the attorney general makes Il
ruling IN the matter all of the insur-
snce companies in operation at the
time the law went into effect will be
permitted to continue to do business
Copies of the insurance code of the
state. as embodied in the Burton act.
and of the county insurance law, also
passed at the last session of the leg
islatuTe. have been printed and are
now ready for distribution.