El Paso herald. (El Paso, Tex.) 1901-1931, 1910-08-02


the proposed insurance reforms which
the legislature of the srate has been
considering since the special session Of
that body was called by governor Tom
Campbell for this particular purpose
Senators Hudspeth. Brachfield and
Willacy have prep ell 4 bill which has
been introduced in the senate and
which they believe will have the desired
effect upon the insurance conditions in
this state
The bill has been sent to FL Paso and
is here reproduced in its entirety. for
the benefit of Ell Pasoans, and in or
der that they may make any sugges-
tons relative to changes which, in their
opinion, might be beneficial
S B. No..
BY Hudspeth, Brachfield and Willacy.
a bill to be entitled an act providing
conditions, additional to those now i'm
posed by law, upon which insurance
companies issuing policies OF fire, ma
rine, or fire and marine insurance on
property in this state shall transact
business in this state; to create state
fire rating board, provide for their ap-
pointment and fix their powers and
compensation; to authorize said board
to- pass such rules and regulations as
are necessary to determine reasonable
rates of premiums of fire insurance on
property located in this state; to au-
thorize said board to employ such cler-
ical force and other assistants as may
be necessary in carrying on the bust
ness OF the Office of said board; to pro-
vide an appropriation for the payment
Of the expense of such clerical force and
other necessary expenses and the sala-
ries eff said board; to authorize said
companies to file rates of premiums
and commissions to agents with said
board and with the agents of said COM
panies, and to keep open for public in
Spection all such schedules of rates of
fire insurance; TO authorize the reVO-
cation of the license of insurance COM
panies to do business in this state for
violation of the orders of said board
to require all persons having knOwl-
edge to give evidence with reference to
the violation of said act, or the orders
of said board; to provide for the time
when this act shall go into effect and
for the repeal Of all laws in conflict
herewith, and declaring an emergency.
Effect on Business.
Be it enacted by the legislature of the
state of Texas:
Section - Every fire marine. or
fire and marine insurance company is
suing policies of insurance on property
in this state, whether organized under
the laws of this state, or any other
state, territory or possession of the
United States, or foreign countries, or
by authority OF the federal govern
ment, now holding certificate OF au-
thority to transact business in this
state, or hereafter granted authority
to transact business in this state, shall
be deemed to have accepted such GER
tificate and to transact business there
under, upon the condition that it con-
Sents to the terms and privileges of
this act, and that it agrees to transa ct
its business in this state subject
thereto.
Fire Rating Board.
Sec. =. That there is hereby created
a board to- be known as the state fire
rating board, which shall be composed
of the commissioner of insurance and
banking. who shall be chairman there
of, and two members to be appointed by
the governor. The members of said
board, other than the commissioner of
insurance and banking, shall be ap-
pointed. as herein provided, within
.. days after this act takes effect,
for the term of two years, and bienni-
ally thereafter, and they each shall
have had at least five years practical
experience in fire insurance business
they shall have the power to prescribe
rates of insurance, to supervise and
control rates Of insurance, to decide all
questions required, authorized or per-
mitted to be passed upon by said bcsrd
upon which they shall agree, and n
case of disagreement as to any such
question a decision of the commission
er of insurance and banking shall deter
mine the action of said board.
Sec. -. That the state fire rating
board is hereby authorized and empow-
cred to call on any insurance company,
or any officer, agent or representative
thereof, authorized to transact business
in this state under this act for any and
all information relative to its business
as often as deemed necessary by said
board, and any company, officer, agent
or representative thereof failing to fur
nish such information when so called on
shall be subject to the penalties provided
for in section of this act.
Pay for Services.
Sec. - That the members of the
state fire rating board, other than the
commissioner of insurance and banking,
his services the sum of two Thousand
five hundred Cs25OO.00) dollars per>an-
mum; the salaries Of the members OF
said board and the compensation of the
clerical force and such other assistants
as said board may deem proper TO en-
plOy and all necessary travelling and
other necessary expenses incurred by
said board in carrying out the prov1S-
ions of this act, shall lee. paid by wa :
rants drawn ny the comptroller upon
the state treasurer, upon TIE order OF
said board, provided, THAI the total
amount of ali salaries ana expenses
shall not exceed the sum OK twenty
five thousand dollars during ally enc
year after this act takes effect
The Proposed Rates.
Sec. =. That every fire, marine, OF
fire and marine insurance company au-
thOrized to transact business in this
state shall use as me basis schedules,
schedules and tariffs in effect in this
state and in each locality thereof on
December 81, 1909, as I; maximum rate
and upon notice from the state
fire rating board Immediately
file such general basis sched-
ules and rates and when so
filed shall be the basis from which spe-
cific rates shall be made, put it is spe-
cially provided that the state fire rating
board shall have the power t. revise,
alter and amend all rates or general
basis schedules, and the ra1eS AMI gen.
eral basis schedules SO amended shall
be the basis from; which the maximum
rate at which the said risks shall be
written. until the same shall be chang
ed by said board or by some judicial
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