New-York tribune., 1910-01-13
INSURANCE REPORT
FOR MORE EXAHTNERS
Hotchkiss Woud Change Lazcs
for Fire Companies.

Albany, Jan 12.-Ir1portanr recommended
tons were made 10 the Legislature tonight
by Superintendent William H. Hotchkiss of
the state Insurance Department in the fif-
ty-hrst annual report of the work of the
department. In brief. he suggests
That fire insurance companies under GER
tain restrictions as to increased capltaliza-
tion or deposits, be permitted to write in
surance against fire risks. not only on land.
but on the high seas, and that marine com
panies be permitted to write insurance
against any OF the risks of transportation,
including fire, on land as well as on inland
waters and the seas.
That the limitation placed on the new
business of domestic life insurance COM
panies be extended to non-state companies
That the provisions of law prohibiting re-
batting by life insurance agents and giving
the superintendent discretion TO refuse them
licenses should be extended 70 fire insurance
agents
A substantial increase in the examining
force OF the department
Real supervision and control of Lloyds
associations by the State Insurance De-
partment.
That the departments jurisdiction be ex-
tended 10 include the control and regula-
ton of town and county cooperative fire
insurance companies
Superintendent Hotchkiss points out the
farreaching effect Of the amendment enact
ed by the last Legislature which gives him
the power Of liquidation in case companies
are tnsolvent or so conduct their business
that, in the judgment of the department,
their further continuance would be hazard
Gus TO their policyholders or to the public.
The Ieport calls attention TO the need OF
q lar i6re of he
law, but recognizes the impossibility of
attempting such recodihcation now. In
lieu thereof, it suggests many changes in
the !, " intended TO strengthen it in GER
tain directions, and to take out of it sec
tions md provisions which lead now TO
determinations in favor of classes of COM
panies and even of companies in specified
classes. Thus, it practically recommends
the rereal Of three Of the ten articles Of
the law, and of all sections and clauses in
Article I. which except from the general
provisions contained in that article frater-
nal beneficiary societies. assessment live
stock associations and town and county CO.
operative fire insurance companies, as well
as certain foreign and alien companies ad-
rlitted to do business prior 10 the codifica-
ton Of 1892
NORMAL CONDITION RESTORED.
With regard to life companies, the re-
port, after commenting on an investigation
Of the effects of the amendatory laws OF
1906-which indicates that, while there had
been a considerable falling off in the new
writings of domestic life insurance com
panies. due to such investigation. normal
conditions have now been restored, and
that. due directly to the legislation just
mentioned. there has been a very consider
able saving in expenses, q marked increase
of assets and a substantial addition to divi-
dend participar1ons-sugges that period
OF legislative peace is what is now needed
by companies Of this class and, therefore.
makes few recommendations Among the
latter are that the Limitation on new busi-
ness now applicable to domestic companies
be extended TO non-state companies; that
life companies be no longer permitted to
issue policies secured by actual deposits in
the department, and that companies OF this
class be permitted, on securing the advance
approval of the Superintendent. to write
policies in not more than $4,000, the
premiums on which will be payable monthly
the belief being that there is a growing
demand for insurance OF this kind from a
large class of wage earners, farmers.
tradesInen and professional men who are
unable TO carry ordinary life insurance and.
on the other hand, are unwilling TO insure
on purely industrial plan
AS to casualty companies, the report
recommends that the uniform bill adopted
at the recent convention of the insurance
commissioners, which provides for stand
ard clauses in the policies of such com
panies and prohibits the use of other
clauses which have been condemned by ex-
perience, be made part of the insurance
nends amendments which will permit com
panies of this class TO give broader. policy
against accidents due to automobile col
lsions and to insure against property dam
age by horses and horse-drawn vehicles