Albuquerque morning journal., 1910-12-29
DEPARTMENT OF
INSURANCE GETS
WARM PRAISE
Indiana Magazine Says Old
States Might Well Take Les
son From New Mexico In.
Protecting PoIlcyholders.

Especial Dispatch to the Morning Journal
Santa Fe. N. NJ. Dec. 2S.--From
the state OF Senator Beveridge comes
unexpected praise for one Of the gov
ernment departments OF the territory
or New Mexico and an admission that
some things. at least, are done bet
ter in the Sunshine States than in
some other commonwealths. Says
Rough Notes journal devoted to
insurance and the industries:
MANY OF the old states might well
take lessons from the frontier terri
tory OF New Mexico in the conduct OF
their insurance departments. Jacobo
Chavez, superintendent of insurance
Of New Mexico, issues frequent bulle-
tins setting forth facts as gathered by
his department which are not only OF
interest TO insurance buyers OF the
state, but, if the frequent warnings
therein contained are followed. are
certain to prove of great value. In
his bulletin Just issued he warns
against the patronage OF unauthorized
concerns and points out how danger
GUS IL is TO put trust In these Jlnder-
grounders
Communication continue 10 come
TO this department from people who
state they have policies In such and
such a company and want to know II
they are authorized to transact busi-
mess In this territory, he says. With
out exception they refer to various
concerns known as exchanges and
underwriters which are conducted
upon the mutual plan. This depart
ment has Issued repeated warnings
against insuring with these concerns
until they fully comply with the laws
OF the territory. II our citizens per-
sist In accepting contracts In these
concerns and then have cause for
complaint they have no one to blame
but themselves as this department
cannot enforce the payment Of claims
in unauthorized companies and the
policyholders are entirely at their
mercy. These concerns comply with
no law and would rather do business
through underground methods than
pay taxes which are met by all au-
thorized companies. Most of these con-
Germs could not get into the territory
TO transact business legally II they |
were to try. They claim to sell insur-
les but when they dodge their shrdl |
ance cheaper than the stock COM
panies hut when they dodge |
their just claims or pay
in long time notes. 1t is found to be |
the most expensive insurance that |
la faxrr IA
that every agent of a company must |
have a certificate of authority from |
this department and II the people |
would insist In calling for these GER
tificates or licenses before taking |
cut Insurance much trouble and an
noyance would be avoided. This de- |
partment has In every way endeav- |
ored to drive these concerns from the |
territory and the only way success can |
be attained is by cooperation OF the |
people themselves. All policyholders |
who are not sure OF their contracts OF |
insurance should write this depart |
ment and ascertain the legality there |
Of,
How many state departments with |
ten times the tax revenue of New |
sh'Nie' "ic hi"hihS any eiioit W pit-
vent the inroads of these unauthor-
lied marnuders? Not half. II is safe |
TO say. probably not a fourth, OF the
state Insurance departments have
ever issued similar warnings to their
constituents. New Mexico may be a
territory and way out on the outskirts
but In this respect Il is not far behind |
the most efficient OF state depart
menta."