Evening journal., 1909-09-17
INVESTIGATE
ALL COMP ANIES
Insurance Commissions T
Sends out Notice TO State
insurance Concerns

The following letter Of Importance
20 Insurance. companies and beneficial
societies is being sent out by Charles
II. Maui. State insurance commits
sioner:
Gentlemen: This department has
determined that hereafter 1t will ex-
anime. at least once year. every in
surance company and fraternal bene-
hciary association. incorporated under
the laws of Delaware, which does
business outside the boundaries of this
State
This decision has been made for the
reason that. before any such company
can properly be authorized by the in
surance department of any other state
or foreign country to do business
therein. this department must certify
\ that any such company or association
has duly complied with all require
ments of Delaware laws. under and by
virtue Of which it acts and has its
corporate being, and that it is in good
condition.
No department Of insurance, other
than that Of the State under and by
virtue Of whose laws a company has
corporate existence and exercises all
its powers, no matter where in the
world il may have its executive Of
fees. can have knowledge of, or can
certify to. the legal sufficiency Of all
company's acts; the legality Of its
Incorporation. organization, and an
nual compliance with statutory con-
ditions on which continuation of its
existence and right to exercise its
power everywhere depends. No other
State can certify 10 more than that
a company or association has com
piled with the statutes and depart
mental rulings of that particular
sovereignty which are conditions pre-
cedent to the granting of license by
IL to foreign corporations of the clas!
to which the particular corporation
belongs.
If any company or association SHOULD
so act. or become i'm such condition
as to make necessary the revocation
Of its authority to exercise its corpor
ate powers within the jurisdiction o.
the state which created it, it mus
everywhere cease business immediate
w. If the commissioner in any othel
state. federal district or foreign coun
try should nullify the license of an,
company or association to do business
therein, such revocation would. o
course. apply only to the business o
the company or association within tina
particular jurisdiction.
This department has uniformly ad
hered to the hitherto almost universe
practice. in this country. of giving thu
same credit to examinations and certi
hcates thereof. made by the insurance
departments of the home States of al
foreign corporations. as it would givl
to examinations made by its own ex
aminers. and IL will continue to ad
here to this course except when th
insurance department of the Stat
which created any company or as
sociation refuses to this department
the same interstate comfy which W
offer to other sovereignties.
II States ignore our examinations @
Delaware corporations. and insist o
= examining them. Notwithstanding eX
aminations thereof by our authorit!
J. this State will insist on its right
q examine all corporations Of such State
licensed. or which may hereafter ar
ply for license. 10 do business in De
aware. Notwithstanding any examine
tions Of such companies by the state
which created them and are respons
n BILE for their corporate existence.
When Delaware, in spirit Of In
/, terstate comfy. offers to other STATE
/. recognition of and give full credit
!, the acts and exercise Of discretionar
{ powers of their duly constituted off
GERS. il requires the same recognitio
by such States of the acts and eXercis
of discretionary powers of its dul
4 constituted officers. 1t asks only Il
same courtesy that il shows to other
and treats other sovereignties with n
less consideration than Il is shown.
The foregoing statement should.
is believed. make II plain that this dc
partment must make annual examine
tions of all corporations to who!
legal status and financial and bushes
condition It must annually certify.
Very respectfully yours.
Chas. II. Maui.
Insurance Commissioner
1000