The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-08-08
News of the Insurance World
SpeciafGontracts on Market.

office OF tho state insurance department
that two agents. representing a certain
life insurance company. only recently ad-
mitted To the state, had been placing
what Is known as special contract
The department Immediately wrote the
company and received n reply stating
that the company's president was on a
leave OF absence. and that upon his
return the matter would receive The ne
ccSSary attention.
That the agents have offered and sold
the contracts referred to there seems lit
tie room for doubt from the evidence at
hand, and It must stand to reason that
they did 80 with the companys full
knowledge and consent. The only ex-
he offered is an ignorance OF the law
governing such cases, which became
effective In March last.
The law on this subject is very clear,
From and after the date OF this act
takes effect, no life insurance company
shall issue in this state nor permit its
agents, officers or employees to Issue in
this state, agency, company. stock or
other stock or securities. or any special
or advisory board or other contracts of
any kind promising returns and profits
as an !nducement 10 insurance"
With reference 10 especial or advisory
board contracts" the position of the in
surance commission is this; That any
policy issueu in Utah shall be available
to any and all applicants. who can pass
the physical examination and can pay
the required premiums. The agent is
violating the law who represents to u
prospective policy holder that a particu-
lar form OF policy can be sold only TO Il
limited number of persons. He is also
violating the law If he represents that
particular policy will be issued only
for a specific period of time, regardless
of what he might say as to his company's
desire. to advertise itself.
Again, the law makes the agent who
sells the contract and the one receiv-
Ing IT both guilty of misdeameanor
punishable by fine and Imprisonment.
Acting Commissioner Done stated on
IS understood that he will so to any
length necessary 10 punish all such yio-
latlons.
Refuses to Grant License.
Harlow Hewitt, representing the Re-
tail Hardware Underwriters OF Palo
Alto, Cal. called upon Acting Commits
sioner Done of the state insurance de-
partment few days ago for the purpose
OF ascertaining whether his company
would be permitted TO write fire insur-
ance for certain business houses in Salt
Lake City and elsewhere in Utah
This is an lnter-i insurance concern or
ganized i'll 1908. and is conducted for the
California State Retail Hardware asso-
ciation- The executive board has an ad-
visory committee OF seven men who are
either executive officers of the Califor-
or who are on the advisory committee OF
that organization. The attorneys and
managers, Harlow Hewitt and Co. are.
to Eess nthoTopEhy
OF members on any one risk is not 10 eX-
ceed IAN amount equal 10 the sum am
nua)ly deposited b. them for current
indemnity" On March g3. this year. the
company reported that 1t had 1900 sub
scribers: THAT the maximum limit Is
S2Ooo Cn subject to one . fire. averaee $1,000.
the loss rates for 1903. it reported was
less than per cent
Mr.. Done consulted with Attorney Gen
eral Barnes. who, after examining the
concerns policy and other certified
copies of papers. advised Mr.. Done that
the conpanys articles did not meet the
requirements of the section of law gov
e1ning such matters and the company
was accordingly informed that il could
not write policies in Utah until 1t could
make the same kind OF a showing re-
quired OF all other FIRE insurance com
panies.
How They Do Things in England.
The average insurance man in America
Is greatly amused when he learns how
the business is conducted by Lloyds' and
other similar concerns In England.
During the late King Edwards brler
illness the dispatches announced that in
surance on his life had advanced to Il
high per cent. causing many in this coun-
try TO believe that the Insurance was
on the kings personal life which would
50 10 MS OWL estate WDGn ne dleQ. This
was later explained In the columns OF
The Tribune by showing that the insur-
ance spoken of was TO reimburse mcr
chants. milliners. hotel proprietors and
through the kings death.
Recent reports from London state that |
LIoyds underwriters arc issuing many
policies on the life of the new king /
George ". NJ the rate OF ga. 4 shillings !
subject TO termination AT the end OF aDv /
twelve months at the option of the ut-
derwriiers and carrying no surrender /
values.
The following editorial from the Even |
ing Post OF New York. in its Issue for (,
August !. shows Tor what purposes in |.
s,rancc can be had IN The mother coun- |
1T has often been remarked that you
can insure yourself against anything in /
nnglandmlr9m burglar to business
Il YOU arc only willing 10 pay the pre-
MUM. To most people, however. & will /
De news that Enelishmen can take out !
insurance against bad weather. This
loes not mean. OF course, that Lloyds
md other companies Will give a guar !
tntee Of good weather. but only that
,winP 10 storms or unreasonable heat
~ cold II is reported ihat the prev
tlcnt chill and rainy weather in Eng
and this year has led To something like
; boom in weather insurance. The meth
nj is widely extended. II an opcu-air
cstlval is planned for charity's sake.
ne Success oI which depends upon the
attendance, which in turn depends upon
lie weather, all that tho promoters have
o do Is 10 take out u policy TO cover
hc risk ~ rain. There have cycn been
,cncHt cricket matches insured against
hc chances OF the weather There is
- vet no record. however, of an indi- /
'idual tourist taking a bond Of fate IN
he shape of AN Indemnity from insur-
incc companies in case Of spoiled holi-
lay. We do not know that tho science
# mctcoroiogY Is moro advanced in Eng
and than here, but We can hardly imag-
ne Insurance companies issuing policies
m the vagarins of the great American
iInatc without knowing much more
ian tncy-oy the official forecastcrs-
'ow do about what a day may bring
ortiz
New Classification Likely,
now system of Iifc insurance. In
'olvnS a change in the methods of
udEtuS whether or not a policy seeker
$ good OF Il bad risk. Is about 10 I've
dopted by all the big companies or the
iniled States. Judging ny The report Of