Rocky Ford enterprise., 1910-01-14
FRIDAY, JAN. IA, 1910
INSURANCE NEWS.
Bulletin No. II From the State In
surance Department.

Commissioner OF insurance Sidy ytoh
gives out the following information!
OF his department., which may be OF
benefit to our readers:
Conductors Indemnity Exchange
of Kansas City: Many inquiries.
mostly from railroad men, have
come to the department about this
organization. If it is operating in
Colorado it is doing SO without au-
thority of law, having failed to COM
ply with the requirements OF the sec
retary of states office, or this depart
ment The public is warned against
insuring in it. as our courts and the
insurance department can afford its
policyholders no protection.
Railway Conductors Protective
Associations: This order bears the
same relation to Colorado as does the
Conductors Indemnity Exchange OF
its just obligations, as evidenced by
case recently submitted to the de-
partment. The public is warned.
Fraternal Order of Railway Men:
Sig Olsen. an engineer of the Denver
& Rio Grandc Railroad Company,
was injured in the Dotsero wreck
last January. He carried $1,000
policy in this order, under the terms
OF which he was to receive $4,000
week benefits in case OF accident.
The order was promptly notified OF
the accident and the weekly indemni
ty demanded. This was refused, the
order taking the position that he was
in arrears at the time of his injury.
After repeated written demands for
satisfactory adjustment OF his claim.
Mr.. Olsen submitted the case to the
department. From careful investi-
Of he d
ence, receipts and papers, we found
that the policy was in good standing
at the time he was injured. We no.
tilted the order by mail on Nov. Is
and received no reply. Then on Dec.
| II a registered letter was sent and
received by the order. evidenced by
the return registry card. This met
the same fate as the first one and re-
mains unanswered. Under the law
governing organizations OF this char
acter, the department is powerlcss to
afford Mr.. Olsen any assistance in the
enforcement OF his claim. \ state
ment OF his case, however, we trust.
will serve as 4 warning to the public
and avoid like experiences.
Commonwealth Life Insurance
Company: This company. on the 18th
day of September. 1909. was granted
4 certificate for the sale OF stock. and
agreed to furnish the department with
copies of all literature used by it in
that connection. So far il has failed
to keep its agreement. Other COM
panIcS organizing in our state in 4
similar manner have promptly COM
piled with this requirement OF the de-
lpartmcnt. The public should beware
OF a company that refuses to disclose
to the insurance department the
methods employed by it in the sale OF
its capital stock. even though the de
partmcnt under the law may havc>no
Jurisdiction over it.
The U. s. Postal Insurance CorpO-
ration: \ certificate for the sale oi
stock was issued to this company on
the 18th day OF May. 1908 An ex-
animation made August Il. 1000. bv
the department disclosed 4 most TIN
satisfactory condition, showing an
,unwarrantcd expense ratio. The prin-
cipal criticism we offered was that
the salaries paid were extravagant
and too many of them for the amount
OF business being produced. The
president and secretary resigned and
n new management came into con-
troll. We believe that the new off
GERS are honest and capable and sim
cerc in their efforts to regain the lost
ground. bur are seriously handicapped
by the loss OF the capital paid in prior
TO the affairs OF the company pass
ing into their hands.
Soliciting Agents: During the
year many complaints have come to
the department from general agents.
due to the fact that premiums col
lected by sub-agents have not been
promptly accounted for. Hereafter.
when IL is conc lively shown that an
agent fails to account for moneys COL
leeted for premiums, within a rea-
sonable time after the settlement per-
iod has expired. his license will be
revoked. This source OF much an
noyance to the department can be
largely eliminated il companies and
general agents will examine more
carefully into the record of ths
agents they employ. MANY times
when an agent is discharged from
one company for the foregoing rea-
son. another company. fully cogniz-
ant OF his past record. will employ
him. and when lie Cmri' US the same
methods with the new company it
complains to the department. 1t is
urged upon companies ant general
agents that an agent who is not
square with onc cvrrary is most
likely to be so with another
The Loyal Protective Insurance
Company. OF Boston (fo-mcrly the
Loyal Protective Association, a fra
ternal insurance organization). was
admitted as a legal reserve company
on Dec. 1&. 1909. with capital stock
lof SIoo 600.
The Bankers Surety Company, of
Cleveland. Ohio. withdrew from the
state on Nov. Il. 1000.