Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-01-19
ALBERT H. WILLARD.

convention of insurance commissioners
was organized in 1871 and after stating
| that the greatest accomplishment in the
line of uniformity was the enactment
| within the last few years in more than
| twenty states of the laws known as the
| committee of fifteen bills the commits
Sioner said:
IF the causes for existing lack Of uni
| formity have been properly and correctly
set forth then the following remedies are
! apparent: Action on one subject at time;
| agreement between supervising officials
| and company representatives on proposed
laws and amendments to existing laws;
a central bureau in touch with the legis-
latures; education of policyhoders and
appeal for their support. proper insight
| into the needs Of the business"
Heavy Insurance Toll Paid.
| From fifteen to twenty million dollars
| year is the toll paid by the life in
surance policy holders of this country as
result OF the lack of uniformity in
state insurance laws and practices" said
l.. G. Fouse, president of the Fidelity
Mutual Life Insurance Company of Phila-
deiphia.
This is at least per cent of the yearly
payments to policy holders and bene-
! ficiaries" he SAYS THE ma gnitude OF
the interests involved is stupendous.
Some twenty-five billion dollars of life
insurance in various forms are in force
! i'm the United States, with accumulated
| assets of four billion dollars. of which
, three and one-half billions are held by
| the legal reserve companies. Over one
third of the population has direct in
| terest in life insurance. and more than
one-half of the remaining two-thirds an
| indirect interest IT is exceedingly i'm
portant that waste and unnecessary taxa
ton be stopped while extending ample
security and protection to the interests
| involved.
Some would seek to accomplish the
desired end through national laws and
supervision; others through the harmonic
ing of state laws and practices For the
present we are particularly interested In
| the latter 1t is a fact that cannot be
controverted that the lack of harmony
/ in laws and practices has been detri-
ment to the business.
| I'm recent years, however, we have
been drifting toward uniformity and har-
mony, and there are many who believe
that the laws of the various states can
| be made consistent and homogeneous.
and that 1t would be better for all con-
cerned that the business be conducted
under such improved laws rather than
under centralized administration.
Hence IL the uniformity hoped for can
be accomplished, there will be no need
of national laws and supervision"
Uniformity in Rulings.
7 In speaking OF the nllOFWlty VI be-
partment Rulings George Fl. Noyes,
general counsel of the Northwestern
Mutual Life Insurance Company of Mil
waukee. Wis. said:
'fhe control which the state first exer-
cised over the business of insurance was
principally through provisions in special
acts OF legislatures granting charters to
the companies. The next step was the
creation Of board of commissioners with
authority to acquire information as to
| the conduct of the business and to re-
port thereon to the legislature. The
! third was to establish an insurance de-
partment.
THE duties and powers of the various
departments, which have been established
in many of the states. have gradually en-
! larged until at the present time they
embrace not only the determination Of
| the financial condition of companies and
the giving of publicity to their transac-
tons, the Investigations OF complaints.
| the recommendation of legislation, but
also the important factors of granting,
refusing and canceling OF licenses to
companies and agents: the approval or
disa pproval of forms of policies, and the
enforcement of statutory and depart
mental requirements.
Commissioners Word Law.
Legislation in most states has made
the judgment of the commissioner in all
matters, both of law and fact, as binding
and the judgment of court of last re-
sort.
Among the standard provisions for
| policies which have been adopted by
eighteen or more states is the one per-
| tanning to policy loans requiring the
company to advance to the policy holder a
certain SUM at a specific rate of interest
These and similar divers rulings do
not cover matters which are essential in
! the conduct of the life insurance business
but they cause inconvenience, if not more
| or less infraction of the principle of
mutually, In preventing companies from
adopting and using uniform policies or
dealing uniformly with their agents in
/ the various states.
Department uniformity should COM
prehend not only uniformity in method
and practice. but in Interpretation of la WIS
cretion."
| George II. Noyes general counsel
| Northwestern Mutual Life Insurance
Company of Milwaukee. Wis. urged state
insurance departments in making rulings
to consider the rulings made by depart
ments of other states, just as the courts
of one state regard the precedents set by
the courts of other states.
| Following the address there was gen.
eral discussion. led by f. p. Marshall. vice
president of the Union Central Life In
surance Company of Cincinnati Ohio The
session later adjourned for lunch
| The afternoon session convened shortly
before ; o'clock. at which Gov. Charles
| F. Hughes of New York is scheduled to
deliver address.
i