New-York tribune., 1910-06-03
AMEND INSURANCE LAW
Governor Hughes Signs Grattan-
Allen Measure.

Albany, June 2.-Governor Hughes has
signed three of the Grattan-Allen bills to
amend the insurance law, which were passed
recently by the Legislature. These bills are
part of a series of nine or ten depart
ment bills, the whole intended to accom-
plish a preliminary revision Of the insur-
ance law. The. three measures already
signed relate specifically to fire and marine
insurance as conducted by stock companies
to fire and larceny insurance as conducted
by the so-called town and county mutuals
and to the insurance of livestock by CO.
operative associations. A statement from
the Insurance Department says:
The bill last referred to, while not re-
pealing Article s. in effect makes such
article no longer operative save as
TO four or FIVE cooperative companies in
suring the lives of horses. cattle and the
like, the amendment accomplished being
one which prohibits the further organiza-
ton of associations of this character.
The second of these new laws repeals
Articles 9 and 10 of the insurance law
and substitutes therefor a new article
which places the so-cslled cooperative fire
insurance companies within the jurisdiction
of the Insurance Department, and in effect
authorizes the department to refuse q GER
tificate to any company which does not
measure up to the proper standard. There
are about $50 associations of this kind
doing business in New York, largely in the
rural communities They perform a very
necessary function in furnishing fire in
syranee in territories where stock fire in
surance' companies are frequently unwilling
TO accept risks, and also, their premiums
being lower, in forcing stock fire companies
10 keep their rates down in many villages
and in some of the smaller cities. These
cooperative fire insurance companies will
hereafter be divided into two classes-those
which collect in advance a premium esti-
mated to cover the cost of the insurance,
which will be permitted to operate all over
the state, save in the metropolitan district,
and assessment companies, whose opera
tionS will be limited to five continuous
counties and whose premiums will be col
lected in the form of assessments, either
after a loss or after a given period of time
or years.
The third of these new laws is intended
to bring the fire and marine sections of the
insurance law up to date. Heretofore a
manufacturer who sold his goods abroad
was compelled TO take a fire insurance
policy to the point OF shipment in New
York and then insure in a marine com
psny while such goods were on the high
seas. The new law permits fire insurance
companies to: do a marine insurance buSi-
ness, and, conversely, marine companies 10
insure against the: risks of transportation,
whether on sea, inland waters or land.
This new law also strikes out the so-called
Grady reinsurance law, which was much
authorizes fire insurance companies to do
sprinkler leakage business and permits
the use, after January l, 1911, of the New
York standard fire insurance policy on
blanks which can be used in q typeWriting
machine II is expected that the enact
widen the supply of both fire and marine
insurance. particularly in the metropolitan
district and on hulis and cargoes entering
or leaving the port of New York.