The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-11-07
Commissioner Talks Plainly.

| jhc state insurance department has
| been asked: What would be the pen
atty In case a firm placed its fire insur-
ance with unauthorized companiesy'
commissioners Done says that an author
| lzed agent cannot place such Insurance
without laying himself open to the pen
alticS of the law; but there Is nothing
To prevent The insured himself from sU
placing the policy. " he was wiIIin, to
take iiIc risk In tho event Of a loss
| however the insured would be entirely
AT the mercy of the companies or those
writing the policy, No adjnster can be
sent into the stale to adjust such a loss
and no suit could be maintained To col
! lect the claim. there would Inc no at =
torney, or agent ON whom proper service
ers for such companies know all these
facts full well, and II they are disposed
| TO violate the law and do business by
| the underground route il is easy TO sec
what they would do before payment on
loss is adjusted and paid
John X, Waters OF New York said TO
nc 'nc attorney ana manager OF ono of
| the largest inter insurance concerns in
America. recently wrote Commissioner
Done asking for iuforma tiou along the
lines sci forth, In his reply Mr. Done
stys: Out state law docs specifically
prohibit the placing of Insurance under
the plan that You outline In Your letter
and circulars Not only docs il not roc
osniZc this plan of insurance, but IL
makes express provision that no such in
surancc shall be effected within the state
Of Utah. I do not sec how any other
Interpretation can be placed upon the
,'tah Ia" rs whole. Therefore. | must
hold to INV former ruling that the ONLY
way in which your inter-iusurancc organ
iZation can receive recognition is for YOU
to conform to tho laws regulating ynu-
tual Insurance companies These reru-
lations are briefly outlined as follows.
The Ming of such report as YOU outline
IN Eour letter accompanied By the proper
Tees of this department and the offices
OF tho secretary of state and county
clerk The fling OF 81 bond as outlined
in section &c of the Utah insurance law.
the suretics TO be properly approved ir
lieu Of such bonds. however, you may
Tile approved securities OF equal amount
as outlined i'm the first subdivision of soc,
.ion - ol our Insurance law. I hand
cover. 1t Will also be required that the
company and al agents employed by IL
Snail be licensed each year by this de.
partment; that no policies shall be writ
ten except by these agents; that all poll
cicS shall be counterSigncd by n licensed
agent residing in the state. and that the
premiums received shall be reported 10
provisions of our law and thc regular
taxes paid thereon, Other minor details
will be required, but these may await
your further action before being out
lined In my position ms commissioner
o: insurance for Utah | am Obliged To
enforce all OF the foregoing provisions OF
the law. and 7 shall attempt TO perform
this duty in all cases that are submit
tod TO this department without antago-
nism to any interests regula rly recognized
under our law But I shall do everything
III my power to bar from the state all
schemes Of insurance not authorized un-
der the law As The requirements above
SET forth arc simple and easily complied
with. II appears 10 me that your own
interests would lie along the line OF MAX
ing compliance instead of antagonizing
the legitimate police regulations of This
and other states 0ffecting the matter OF
insurance
4 L
thorities have Of late been figuring how
much revenue has been lost ia the state
through tho writing OF policies in unau-
thorized companies. OF course. exact fig
Ires are practically unobtaiHable but il
IS safe 10 say that many thousands OF
dollarS arc lost annually I'm taxes The
business should certainly furnish food for
thought. but to policyholders and those
who Share charge OF the states revenues.
Notable Liability Decision.
4 notable liability decision has been
rendered by Judge J. &. Pritchard of the
United states circuit court at Ashevillc,
n. C.. which viii prove of interest 10
those who carry employers and general
liability insurance. The title of the case
was the United States Casualty companY
ycrsns the Virginia Caroline Chemical
COMPANY. INC insurance company sued
Tor premiums alleged 20 bc due on ac
count OF understatement BY the chemt-
cal company Of the amount of its an
nual pay roll The point involved III the
executive officers and office employees
and others except those actually work
inS IN the various manufacturing plants !
o. the company should be included ia
IHS statement oil the pay roll report upon
which the United States Casualty COM
pany was 10 base tho insurance pre-
NUNS from year "a yesr.
In the opinion Judge Priichard holds |
that since th" executive officers and |
office employees OF the chemical company |
were Included IN the terms of the policy |
been liable under The wording OF the /
policy az drawn. then the salary paid |
these officers should have been Included !
IN the pay roll report. An auditing OF (
about $4,000 in salaries on which Pre-, !
lniums were unpaid during the five Years |
me insurance WIS IN force, The coUr, |
rules In effect that tho insurance com !
pary can recover back premiums al thc |
rate OF e. cents on each sion |
Of the pay roll. which. il is estimated |
VIII amount 10 $500
Attacks Assessment Concerns.
IN fhc annual report to the governor !
oi oklahoma. tho Insurance commissioners /
cakes a rap Al insurance companies form
ed on the assessment plan. and in this
~ appears ne is carrying on the fight !
,nausura,ted ma, Z; by his predecessor. The
10 oklahoma for pure assessment com
panies, and ! hope no laws VIII be ems
acted nor present laws continued so as
we state Assessment companies. other
,han 3;crn5ls, avc as a rule orgar rizeG
Tor the purpose Or creating SalaricG 20. !
iiilois FOR In" luCorpoTaiors and for the
purpose Of using funds derived from tho
assessments OF members as Investments
Tor profit 20 those In control. There are
persons in The state now ready 10 ,auncl,
such enterprises rs soon as ,hc law
NAV. II ever. permit, Wth the inaugu-
,ation Of th,s department undcr state
hood all pure assessment associa ions
were ordered To cease writing business
N this stale. No greater service TO the I
citizens Of this state could lave hccu
accomplished by Commissioner McCurnb
than was don" uN this singh. act Hlu
his bcnchccnt result was not TO be
brought about without opposition. Per
sistent but unsuccessful efforts were
made during the first legislature TO Sc.
euro legislation favorable Ia such nsso-
:!ntions. The second legislature wit
1GssCd The contest anew, and Il fruit
csS victory WAS secured for such com
)auicS through the insertion g5 amend
ncnts to the general insurance laws cn-
acted by the legislature. Designed to en-
Itlc them To admission and To rcIicvc
hem of departmental supervision. yiI-
ua'ly "ntilinE them to become pira Pes