The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1909-01-26
BILLS
ARE INTRODUCED
Stookey'S Measures Provide
for Insurance Department
and Amend Present Laws.

Two insurance measures were intro
duced into the senate of Utah yester-
dav by Senator Stookey of salt Lake
county. The first calls for the estab
lishmeut of an insurance department
for the state of Utah. and to regulate
/ the insurance companies doing bust
ness il this state; the other measure
/ is introduced for the purpose of amend
I ing section 400 to 4Z2, inclusive, and
/ section g65. compiled laws of Utah, TO
/ conform with the provisions of the first
/ measure and to add several new fea-
lures to the present laws regulating
| insurance companies engaged in doing
! business in Utah,
1t is stated that the first measure,
/ which provides for the establishment
of an insurance department for Utah
and providing for the appointment by
the governor, with the approval of the
/ senate. of an insurance commissioner,
ably qualified and under bonds to head
that department, will meet with no
/ opposition on the part of the insurance
companies. The measure provides for
the establishment of the department,
I the appointment of the commissioner,
for his taking the oath Of Office and
l furnishing bonds. for his seal, for the
| appointment by him Of a deputy and
chief clerk. the establishment of an
office by him. etc. The measure fixes
his salary at $500 per year, payable an
nually the same as for other state Off
GERS. The deputy commissioners sal
airy is fixed. under the same conditions.
at $500 per year. The measure also
provides that upon demand all state
officers holding papers or documents of
any kind properly belonging to the new
state officer, shall turn them over to
him, taking a receipt therefor, which
shall relieve them from any further
responsibility regarding them. The last
section of the measure provides that
the act shall take effect on the first day
of next May.
Present Sections Amended,
In the second measure which calls
for amendments TO present sectiC1s,
there are only one or two changes of
Importance. most OF the changes being
. In, the nature of provisions for releasing
J certain state officials from duties in
: connection with insurance matters and
transferring those duties to the insuT-
, ance commissioner. whose creation is
f provided for in the first measure A
few minor changes are first noted:
Section 414 now provides for the ex-
animation of the affairs of any insur-
! ance company in the state by bank
: examiner when requested to do so by
the secretary of state; also that twenty
D five policy holders in any foreign insur-
e ance company may demand an exami-
! nation to be made. As revised, the sec
rotary of state and bank examiner are
1 relieved of any duties in connection
e with such examinations, and provision
=. | is made that the bank commissioner
e may make such examinations at an!
!, | time he may see fit: also that ten policy
I holders in any foreign company may
e | demand an investigation. A furthe
= provision is made, that, if ne deem'
necessary, the bank commissioner ma!
appoint one OF more disinterested per
sons to make such investig2 lions.
Il Section Ais, which provides for tn,
y revocation Of certificates for violations
on the part of the company Of stat
statutes or for failure to corSply witt
g the provisions of the Utah law, i
> changed somewhat, notably in making
> provisions whereby such cOmpanie
:, may reinstate lapsed policies. Tn
next several sections deal with fees
Section 4f9 raises the amount Of tax OF
insurance companies from IL to pc
cent on the gross premium receipts.
. In section 422 several n nor change
II are made TO harmonic with new pro
visions. and some new provisions ar
! added. One Of these prohibits life in
: surance companies doing business
II this state from any discrimination
ID issuing policies or making any insur
a. ance contracts not expressed IN pol
T, eies, or for rebating any part of an
a. premium on q life insurance policy;
Sc penalty of a fine of $3.50 and the revoca
% ton of the certificate of authority {
- any insurance agent convicted is pre-
. vided This is said to be a pTovisio
that the life insurance men have bee
anxious to secure.
Non-forfeiture Clause.
. Another new provision tackled on
section 42z is q non-fOrfeiturc claus
O. which provides that al life iusuraDC
u eOmps MES doing business in Utah sha
= provide in their policies that, afts
a three OF more annual premiums haS
TX been paid upon policy of life insul
i ance. and default is made in paymer
le of any subsequent premiums when du
y then. notwithstanding such default, Il
CT company shall. without any acton q
the part Of the insured. convert II
= same into a paid-up policy for as man
= dollars as the value of said policy vi
b purchase to be determined by the tab
e of surrender values in use by such con
8 pauy at the time Of the issue of Il
e policy. which shall not be less than n
s full net value of the policy per 'ActI
e aries Experience Table of Mortality
q with interest at such rate as IS mair
& tanned by the company issuing Il
q policy.
81 Then comes the new provision ~hic
81 the measure proposes to attach to SCI
3 ton z22. which. it is stated, viii
s. most obstinately opposed by all repr'
b sentativss of fire insurance compani'
g in this state 1T provides an induce
ment for fncendiarism." said one fl
insurance representative last night .
viii mean that most OF the standaI