New-York tribune., 1909-01-25
ASKS FAIR TAXATION
MR. KELSEY'S REPORT.
Wants Companies Reieved from
Ecpenses of Examination.

dtions of insurance companies Of all kinds both
local and foreign; making 2 plea for equitabIs
taxation and relief Of insurance companies from
the expenses of examinations by the department
and renewing his recommendations for certain
amendments to strengthen the insurance statutes,
Otto Kelsey, Superintendent of Insurance. has
presented the Legislature the hftieth annual
report of the Department Of Insurance.
According to Mr. Kelsey's report, there at
the present time AS companies reporting TO the
department follows: Fire and marine, 2lo; life.
Ss casualty so; title 10; assessment. life and ac-
cdent, Y; fraternal, II; inactive, .. Tables
given showing the resources and the business done
during the last year by the various companies do
ing business in this The financial statement
shows that the receipts OF the department
1853 4O6 80; disbursements. s15727 81; surplus paid
into state treasury, s2l3.679 o.
superintendent Kelsey then takes up the general
subject of taxation. and says:
sary outlay for the conduct Of business volun-
owner as safeguard. the would be hours
OF or 9verwork by a day laborer in his own house
by the state for the revenue for general purposes
can expect to revOlutionze established system
OF taxation by simply finding fault. The state must
abundant income for a correct principle which
t1, Xolyes a defleit Efforts may well be directed
methods Of taxation and. if possible, in prevent
while agitating for ultimate reform and relief by
the adoption of a more just plan of taxation of
Of insurance may rightfiliy ask for Investigation
OF facts alleged to sustain their several protests
premium life insurance is being severely discrini-
may reasonably be heard in a petition for legtsla-
tive consideration.
Mr. Kelsey reviews the taxes Of various kinds
imposed by the various states gives the r, com
rendaticn made by the insurance commissioners
committee. He adds
The recommends ton By the department in former
annual reports is renewed that. as insurance cor
poses the special enactments devised to reimburse
the state for Its outlay IN superTdslo d ~ he
pealed and appropriations made in place OF re-
funds now exacted.
THE AMORTIZATION PLAN.
Mr. Kelsey again recommends legisla ton for the
adoption of the amortization plan of valuing fixed
securities which he recommended year ago
He submits form of bill for amending Section
Is of the insurance law to authorize the method or
amortization and again commends II to the favor
able consideration Of the Legislature He adds that
the year 1908 a year of satisfactory busi-
ness conditions in life insurance.
The tables carried in the report compiled from
special returns of life companies file in the
department. Tables numbered 1 10 cover the five
year period from 1904 TO 1908. inclusive. COM
parative showing based the first and last .-ear
of the above period is as follows:
The amount of insurance issued. revived. etc by
was 81 s s @ and % for ,s 6bs So, ysar es 1908 was 1885,
The amount OF Insurance ternlina ed by the New
York State companies IN 1904 56Ss40l0 and In
In 1904 the New York companies had Insurance in
force amounting to $ S34 81 - 4s2 and in 1905 6s
In 1904 the New York State companies showed
s4l,5lOsl and in 1898 showed loss IN Insurance
in force over the previous year Of $2+l2s oe3 90. -
the New York State companies s955 sl2. ls4 and
IN IN s first T@S preams reeeyed the New York
State companies show. in 1904, E5a!,1S. and In
The New York state companies show total nsur
anSe expenses in I99t amounting to .; aS a. al ana IN
For amounts paid for election OF directors and
1874 sSs'sfS sfi7 In9 and in sIs iso o ssiS 1'
The New York state companies show new ousl, ousa,
ness written in the State Of New YORK in lCf
amounting to st5;tT;;Sss and in 1903. 'soo7ssSs
s9pwng % @ loss ysr 9f Sat- s Companies show
in force in the state Of New York in sot amounting
29 O42 and in 1908 $780, 66 showing gain
combined shows he highest vote cast for single I5ss
director for 1895 to have been 5s'24 ana IN ISs'
THE WASHINGTON LIFE CASE
With reference to the recent transfer Of the as
sets aud papers of the Washington Life insurance
Company to Pittsburg the successful efforts or
the department regarding the return OF the assets
10 it's Jurisdiction. Mr. Kelsey says.
An important question has recently been pre-, pre-
sented by the action OF officers and directors. with
the approval OF large proportion ol & tne W 2"neTS %
Of stock of one Of the Oldest ne insurance 'o VI
porations in the state In making contract OF re-
Insurance with life insurance corporation from
another
ness In New York and Immediately transferring
from the jurisdiction Of New YORK All secuIle.ts
company. Whether under present provisions oL ','F
insurance law valid reinsurance contract can De
so made and enforced. and whether New hork
stIG a'Vr - his state TO another and deliver
its total assets Under a contract by which out
side corporation assumes the total liaDlllueS' IN
holders and OF the wishes of policyholders 10 whom
the bulk OF such belong, are matters which
tho VIII decide But WhateVetr, MAJ MAJ u u
the final result upon facts 10 be established ana
a judicial construction of the statute now IN IoIor
the transaction is q warning of similar transfers
Yet to be attempted If this shall prove successful
and calls attention to the need OF suitable amend
and the merging of corporations such retroVtlS r3
detective for the purpose. Where many millions
OF insurance have been taken upon faith that New
poration for the life OF individual contracts the
state is under obligation to safeguard the rights
of poIicyhoiders by maintaining jurisdiction over
a domestic corporation, or TO release II oIy am arr
crate action and supervision OF the terms and con
ditions OF transfer. and knowledge OF the cnarac-
ter and financial responsibility of those assuming
its obligations as shall satisfy reasonable DE-
for protection The residence ana existence
in trust and liable upon long term n, conLrag,s. t
tions of ambiguous language. A change OF i doiIi-
Gle TO another state by so important a qua3,5j 5
not upon the sole initiative Of its managers
Among the amendments to various sections OF
the insurance law recommended by Mr. Kelsey
are one to Section 20 relative to automobile col
liSOn insurance. In Whicn ne says ~ - ue>'ih"'.
that the language OF the law should be broadened
to enable companies carrying on this line OF bust
ness to furnish protection against all property
damage which may result from the use OF the auto
mobile though the automobile insured doeS ho'
come into actual collision with another vehicle
the repeal of Subdivision Section 20. which Is but
surplusage: an amendment repeating ali sections
relating 10 registered policies; repeating certain
sections of the insurance law relating to the stand
,rd of valuation for insolvency. thus removing
s, tho statute books special legislation Of twenty