New-York tribune., 1909-05-08
SIGNS INSURANCE BILLS
REFORM LAW AMENDED.
GOUernOr ApprOUes Measure to Re
duce ReceiUership Expenses.
[By Telegraph to The Tribune. ]

Albany, May 7-Amendments to the insurance
law designed to stop heavy expenses of receiver
ship proceedings by placing liquidation under the
charge of the Superintendent of Insurance and
making certain general changes in the Hughes re-
form laws signed tonight by Governor
Hughes. The most important of the changes rnade
by the bill amending the law generally were 10
provide that the state pay all the expenses OF the
Insurance Department instead OF the insurance
companies. they paying only the expenses of exam
nations, and to allow to agents renewal cOInrniS-
sions for period fourteen years instead OF nine
The bill also provides that all policies other thah
industrial policies which issued or delivered III
this state shall contain certain specified standard
provisions and that with respect to other matters
the form OF all policies of life endowment IN
issued or delivered in this state shall be
subject to the Superintendent's approval
The changes in the general law were drafted oy
the Association of Life Insurance Presidents EA-
Senator TulIy, counsel to that organization, went
the bill with Governor Hughes before II was
introduced, SO tha+ when Senator Grattan and AS
semblyman Hama presented that measure II was
In every detail satisfactory to the Governor ana
OF his signature If passed substantially IN tha
shape Allowance of more compensation 10 the
agents OF the two great sources OF cri'i-
cism against the original insurance reform laws
Said the Governor in a memorandum on the
changes: After this. certainly no one can De
heard to assert hardship who looks at the matter
from the standpoint of the poncyholder'
The other big protest. not embodied in the BILL
though a couple of the life insurance companies
fought vigorously in the association to have 1t put
in is against the limitation of new business Inc
New York Life Insurance Company has taken the
lead IN effort have that part OF the insurance
laws repealed. In his memorandum the tIoVeFhOr
shows how futile such an effort would have been
by reiteralng his resolutions for the original legs
Iation with the declaration. "A halt has been calIeo
too soon.'
The memorandum follows:
The enormous increase of business Of the large
assets held in control which easily lends ltselt
to. self-perpetuation and over which the policy
can only with the greatest difficulty exercise the
power which rightfuly belongs to them makes !.
to grow unrestricted. Years ago their ohlcers.
tme PeseT %re sposed to limit
their growth and TO favor legislation for TINS puf-
bounds were set to the ambitions OF those who by
virtue of their control OF the savings oi tne PeGp
held unexamped power II Is gehtIaIt r. @
that permit such aggregations. constantly grow
unchecked would subject state supervision 20
severe and unnecessary strain and would multiply
and opportunities secure selfish political control
halt has been called none TOO TO soon !iross ~ the
larger companies make It the more important that
the smaller companies while having reasonable
opDortrnity for growth under normal conditions.
should he economically managed. and that this
Which viii prevent return 10 the high pressure
methods Of former years
Concerning the receivership measure. the Gov
ernor in his memorandum says:
The waste which has resulted from protracted
legal proceedings nd from the heavy EXPENSES IN
ci6ental 70 receiverships has been serious abuse
While OF the authority OF the courts re-
mains unmpairad. II is highly desirable that these
matters should be managed in economical and
businesslike manner. and II is believed that the
powers granted by this bill TO the Insurance I5e-
partrnent will greatly aid IN bringing about this
needed reform.
Governor Hughes also signed to-day the bill Of
Senator Grattan. amending the Insurance law. rela-
tive to the Incorporation Of securities guaranty cor
state municipal corporations The Governor also
approved Senator Grady's bill providing that no
one shall be appointed deputy register under the
Torrens land registration act unless he is deputy
register assistant register. appointed under
authority. a deputy county clerk