Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1910-12-17
Bulletin by JaSobo ChayeS Con-
tainS Valuable Information on
Unauthorized Insurance in
New Mexico.

For the Information OF the Public,

49, 49,
sued repeated warnings against IN
surfing with these concerns until they
fully comply with the laws OF the
territory. If our citizens persist in
accepting contracts In these concerns
and then AVE cause for complaint,
they have no to blame but them
selves, as this department cannot en-
force the payment of claims in I'M
authorized companies and the policy
holders are entirely at their mercy.
These concerns comply with no law
and would rathe do business through
underground methods than pay taxes
which are met by all authorized
companies. Most of these concerns
could not get into the territory to
transact business legally if they were
to try. They claim to sell insurance
cheaper than the stock companies.
but when they dodge their just claims
or pay i'm long time notes it is found
TO be the most expensive insurance
that could be bought.
h law provides that every agent
of a company must have a c%ertifi-
cate Of authority from this depart
ment, and If the people would insist
in calling for these certificates or IL
censes before taking out insurance,
much trouble and annoyance would
be avoided.
his department has in every way
endeavored to drive these concerns
from the territory and the only way
success al be attained is by the CO.
operation of the people themselves.
All policy-holders who are not sure
of their contracts OF insurance
should write this department and as
certain the legality thereof.
Promotion Expense: This is the
cftre ~ Ilft,V II..Ir t,t..n .aIt.I ...t.,tr
companies have gone to pieces. The
sale of stock by professional stock
statesmen who make promises TO
prospective buyers which are impos-
sible of fulfillment seems TO have
somewhat claimed down, for 1t was
found that the people are looking
into the propositions more closely
and therefor not as easy TO separate
a man from his money by illusions
and dreams of getting rich quick.
Under the laws of the state OF New
York the superintendent of insur-
ancc has authority to investigate all
companies in process OF formation
which ave offices within the state,
and as q result thereof q general
closing Of offices and exodus Of pro-
motors has resulted. The result OF
the Investigations are given TO the
press which cannot help but being
beneficial. The result OF high
promotion expense Is seen IN this ter
ritory by the failure of the New Mex
leo National Life Insurance company
of Roswell having Il promotion ex-
pense of 30 per cent and costing the
stockholders some $4,000, and the
Southwestern Fire Insurance com
Of Albuquerque with a promo
ton expense of 33 la per cent and
costing some $4,000 before a halt was
called. Both concerns are now In
hands Of receivers.
Companies of all classes promoted
along legitimate lines and a reason
lble promotion expense and with
proper and efficient management are
welcomed and will receive the hearty
of the people.
There are stock statesmen in the
erTitory at the present time who are
stock in companies from other
tates and we warn the people to
ully investigate before taking stock
n them. This department will en-
Ieavor to ascertain as far as possible
IL information regarding them and
Will De given to those who apply
or same and any company which re-
uses to give this information Is GER
ainly not worthy of confidence ana !
onsideration. /
At the last convention Of the in
urance companies held at Mobile, r
la, the following resolution was c
dopted: C.
Whereas, many insurance compan-
IS now being formed in the various i
.ates are selling their stock at two
three times its par value, upon $
presentations that the excess over
nd above the par valu will be cred a
ed to surplus. and, II
Whereas, the stock statesmen In \
Of said stock receive com Il
Iissions varying from 20 to 80 per r
mt Of the o paid in by the n
o~ckholders, and the stakeholder is y
ot informed that any portion OF the a
.oney paid by him is to be paid to e
Ie agent who sells the stock. and, h
Whereas, many complaints are re- a
lived by the various insurance de- A
lrtmcnts from persons who have n
irchased stocks that they have been
sceived into believing that all of the N
oncys paid In by them were to be- Il
either a part OF the capital or ~
rplus funds Of the company. now u
%erefore be IL 81
Resolved by the National convon- al
IN Of Insurance commissioners of al
e United states, that IL s. the sense NJ
this association that I'm all cases
4 a. ~ lNlhNlNhH - AAtA - NNAT
ret an insurance business. intends ID
pay out more than five per cent Of n,
e amount realized from the sale OF
pck for organization and promotion G,
penscs. that each stock subscriber m
ght 60 be required to give his writ
D consent thereto, such written an
nsent TO specify the exact sum or c,
oportion OF the money paid in by ca
m which may be expended for pro- 5 II
,tion and organization expenses.
This department viii. as it has in M
3 past. suggest to all new promo ne
ns In the territory 10 stamp or ia
across their subscriptions or
1tract blanks the following state Gil
mt. Ju
This subscription on contract is 90
ned hy the purchaser with fun wi
owledge gud understanding of the WI
10 OF promotion and organization.
insofar as IL relates 10 the Co
D-ortionment Of the amount paid Ia or