The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1909-07-01
Statement Is Sent Out in Regard
to New Insurance Laws Passed
by Last Legislature
OLD LAWS REMAIN IN FORCE
Laws Provide That Owners of Build
ings Shall Pay Tax When Com
panies Refuse to Settle
With the State

A compilation of the insurance laws
of the state, including all enacted at
the last session of the legislature, has
been prepared in the insurance depart
ment and fled with the printer. Tt
is expected that this will be ready for
distribution by the end of next week.
An examination of these laws shows
much insurance legislation of import
ance was enacted.
None of the life insurance legisIa-
ton of two years ago was repealed
and only three slight amendments were
made. Those remove any possibility
of dispute as to the construction which
had already been placed on the laws
by the department.. A new law permits
a company to write both participating
and participating business provid-
ed it maintains a complete separation
of all such business and files an agree
ment with The state that no part of the
funds belonging to mutual policy
holders shall be diverted from them ex-
cepting such as the existing charter or
the policies provide for. Perhaps the
most important new law is the one
relating to the valuation of policies,
chapters 200 and 236. This provides
for a valuation of every form Of life,
accident and health insurance and an
nuities, and gives to companies the full
lest freedom in making their assump-
lions as to the expected mortality and
interest and the method of accumulat-
ing reserve within the limitations pre-
scribed by these laws as safe and rea.
sonable.
Another law, chapter los, requires
certain provisions in all policies. The
first provision required is that the NOR
ts.li+y ssl,7sg i9tasest rate and method
on which the reserves are to be accum-
ulated are to be calculated. The
second provision requires the pre-
miums for life and other insurance to
be stated separately, making it impos-
sible for companies and agents to con-
fuse the insured and prevent fair COM
parsons by adding provisions against
sickness and accident
The third provision requires that the
policy grant automatically upon the
failure to make any payment of pre-
MUM, either loan or extended or paid
up insurance. A further provision re-
quires that all such benefits shall be
of the same value, thus doing away
with the old practices of making very
excessive charges for paid up or ex-
tended insurance allowed when a policy
holder defaults in his payment
A change has beer made in the law
relating to investments by chapter
267, 1909, section 1903, permitting
such companies to invest their capital
and other funds in the bonds of pub
lie utilities
The law relating to special interests
of fire companies and their agents is
chapter 159, section 1881 which
prohibits Relating. This applies the
same rule to fire instance and also
casualty insurance as has been applied
to life insurance under the old anti
rebate law.
Another law, chapter 259, 1909, Sec
tion 1219M, requires a tax to be paid
upon all insurance in unauthorized
companies, the owner to pay the tax
where the company does not. A num-
Der Of the larger cities have been sue
cessful in collecting the fire depart
ment dues on this class Of insurance,
and it is believed that the state can
lie equally successful in collecting
this tax, thus doing away with what
is really at present bonus to I'M
companies in their immunity
from taxation even where the insur-
ance is written openly.
Bv chapter 290, section 1918, the IL
cense fees of fire and the license fee
of fire and marine companies were
changed to 2 per2ant, on the basis
of the gross premiums collected with
out other deductions than return pre-
The old law allowed de-
duetion Of all losses and reinsurance
and imposed Tax of 4 per cent upon
the balance, the effect of which was
to bring in about the same revenue as
the new law and TO impose 4 very
heavy burden under she retaIiatory
laws, on our domestic companies.