The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1909-03-15

~
I ISOLATION Attacks state Insur. !
- anco Departments. z
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Charging that more ia lost to Insur.
ancc policy holders through icstruct'
iroe leglslniion ,hap mismanagqmeus.
and dishonesty OF company officials
and Tthe Incompetence or anfalshful-
ness Of the majority Of the state IN.
aurnnce departments, the COMMITTEES
cl the American Bar association on
Insurance law asks insurance COM
panles 70 frame a model law.
The commlttee's report makes the
following recommendations
First-That the insurance commit
tee be directed to draft and report 10
the next annual meeting Of the aes,.
station a bin that shall safeguard tie
interests Of the life companies AID
their policy holders, but which ahasl
require deferred dividends on life polt
lies to be biennially apporlionei. cred.
ted ana notified 20 the holders OF susil
policies.
second-she repeal Of the so-calel
,eciprocal or rclaliatory tax laws
Third The repeal o. the valued pol
Icy laws.
Fourih The creation III each sla,e
ii lie Office Of fre marshal.
fifih--Str.cter interpolation laws
In the several states, with partierlar
reference to the capital stock ena
stocaholders obligations "a Insurance
companies.
sixth--The enactment of a federal
statute forbiddins the use OF the meI's
10 persons, associations co-partrcT-
ships or corporations. conducting nry
kind Of insurance business in the l5i..
"a states. who are not licensed "a
transact such business by the states
whore such persons, associations, 60.
partnerships or corporations arc doa-
lcilcd, or under whose laws auy s's-h
uorporations arc created
seventh The enactment Of . fsdefnl
I statute providing for the saperyaaor
of interstate transactions IL l.s'y
ancc.
After giving figures 90 show the ig.
mcnslty of the insurance business II
tho United Sulcs the report slyr
"1he most conspicuous cxaeiilaa q
Legislative unwlsdom is found II tft
bills prepared by the Armstrong caa.
mlilee and passed By tho Vow YRS
legislature. The most conspicuous h's
cause Il has had the whl.st ndyoYtis9
meut and because Of the Things wAei
the committee might have dcae hgi
failed to do; and rs iynprarc, ef [ 3
subject is confessed.
Governnlent unporYision Of insNa =
rompahies is urged AZ necessity bit
tho burdensomc taxes levied avaias
the companies by the various an ii
are declared to be unInstiliable T -
taxes. which are said TO amouri Il
s25,OOO,O00 year. are ultimately pat
BY the policyholders.
Of state insurance departments lhl
report says:
"ihe trouble 10 hat the state II.
smance departments are siscHFs
They are political prizes KnoAle p
0f the insurance business is TIC lag
thlug required. They ure inero eallss.
tion agencies They offer The
seductive opportunities for frnd g
graf, that exist in the United State
Although denying that this ehae
applies TO an state Insurance depl
ments. the report cites the disclosure
made in New York. Pennsylvania aaH
Minnesota az specific Instances it
prove It's general correc.nets.
state insurance commissioners us
quoted as saying that they are power
Tess to accomplish the objects fsl
which their offices were crea ed. aa,
the report adds
'As q matter Of fact, the ys,om u
state supervision as administered ~
der the laws now in force Is O mlsr
able failure, The honest md intsliI
gent commissioner Is barred from ef
fectiye supervision by the very lqa.
he ID bound to enforce, which efor
golden opportunities that dishonest Of
fcials have been quick to grasp.
The report then quotes hgnres t
r show that the great mass OF insuraas
! business Is Interstate in character. m
gives many authorities to show ihe
tho popular demand Is for fcieya
rather than state control 1t also q.
swcrs the argument that the supFen
court has held that insurahe
business ~ not commerce.
~rhc real opposition 10 the tetrf
supervision of insurance does nut rna
npon the absence Of cungrcAsoas
pUwcr. but rather IA the disInciihasle
AZ exrycieN IL. Tshat Dhsecffnn l. nals