New-York tribune., 1910-01-04
INSURANCE REPORT
GOES TO COZ. HUGHES.
Deals scith Investigation Of Co
0peratiue Fire Com panies.

Albany. Jan 2-superintendent Hotchkiss
of the Insurance Department has trans
ra;.fed 10 Governor Hughes a report made
hv Assistant Examiner Train to the ST.
,,erintendent of Insurance and the Sccre-
tary Of State. covering an investigation of
Town and county cooperative fire insur-
a.ce as operated in this state.
The report includes history Of town
end county cooperative fire insurance i'll
New York and the legislation relating
thereto. the financial statements and meth
eds OF transacting business OF the i45 COZ
operative Are insurance associations now
authorized 10 do business: an annotated
summary Of the laws OF New York ap-
plicable 10 this class Of associations;
digest Of important decisions bearing on
the subject, and summary of the laws OF
other states relating 10 insurance assocla-
tons CO this nature, together with such
suggestions as have been brought TO the
attention OF the department in connection
with proposed legislation intended 20 bring
these associations within the supervision OF
the Insurance Department and make their
contracts trustworthy and their methods of
doing business uniform.
Tables contained in the report show that
for the year ended December 81. 1905, the
income of the town. grange anc county
assessment ciations-that is, of all such
associations excepting the so-cailed ad-
vance premium associations-Was $9So, 800 o5'
their disbursements were S4zi.-eo % ana the
7,lrnher OF uolicies and amount of insur-
ance resn4cfi,-elv. in force in all of these
associations. including those Of the ad-
lance rrer,iurn class. were 2s7.el5 and s4S5.
Es7 ssa. The town, grange and county as
sessment associations, being purely CO.
,,r,srafive whose liabilities are met by as
sessrnerts no figures are given indicative
,f ttair assets and liabilities. The advance
premium associations, however, show as
sets amounting TO sol. .7e4 80 and liabilities
Of S1ss. .s45 7s-such associations thus having
an aggregate surplus OF sJ65,1ls Ii OF the
gross policies in force. nearly half are IN
the advance premium associations, and OF
the outstanding insurance about one-tmrd-
The Importance of these classes of insur-
snce will therefore be appreciated ard
the need of proper supervision and stand
srdization in business methods apparent
Most of these associations do business III
the smaller cities and in the villages ana
agricultural communities of the state. Ihe
detailed statements of each indicate that
they are. as rule. in fair condition. The
report. however. includes summary OF the
administration. to date, Of eight OF the ad-
vance premium associations now in process
OF liquidation by the department seVeraI
other associations. whose conditions were
not entirely satisfactory, have levied as
sessments 10 meet deficiencies. disposed OF
doubtful assets. and, generally, met tle
views Of the department.
In the Judgment of the department, how
eyer. legislation as to these associations is
necessary if the work begun by the investi-
cation thus reported is to have permanent
results AS to the town, grange and county
assessment associations, the suggestions
have been made that all future lncorpora-
tions Of this character have the advance
approval OF the Attorney General ana the
Superintendent of Insurance; that such as
sociations be subject to examination ana
supervision BY the Insurance Department
thai annual reports, showing financial con-
dition. policy exhibit and method Of trans
acting business be filed; that all bylaws
and amendments have the approval OF the
Superintendent Of Insurance, and that an
moneys borrowed for the purpose OF paying
losses and expenses be repaid at the end OF
each fiscal year.
As 10 the so-called advance premium as
sociations many suggestions looking 10
rroper and remedial legislation have been
made. as. for instance. that they be brought
llnaer the supervision of the Insurance De
partrnent and be subject TO examination
and required To file annual reports, show
ing their condition. assets and liaolhtIes
and such other information as may he
thought necessary; that all new assocla-
tions of this character be permitted 10 90
business only after the legality Of their OF
gsnizaticn has been passed on by the At
tornev General and certificate authoriz-
ing the beginning OF business has been
issued hv the insurance Department