New-York tribune., 1911-12-01
New Law Regarding State L.
cense Hits Brokers Hard.
FOUR PERTINENT QUESTIONS
Aimed at Lawyers and Clerks
Who Obtain Commissions on
Clients Business.

In accordance with the new law WHICH
will 60 into effect on January |, ne" s'd'e
license blanks will he distributed shlois
New York insurance brokers "hicn VIII
contain these four questions:
=. a,,i;,spt engaged. in good faith, prln,
e;nsii,. in The Insurance brokerage pHSliI.S>i 49,
Does applicant intend 10 ensass, Hroiser.
fsitb, principally In the insurance p'"Ne'
2ge business o,,,,love of any
,areor nsrtnership. association OF CVl CVllrJ,.cs
ion on whose property OF rlShs uC To- insur-
or expects to receive appllCduo" iO'
IL This application for certhcate ee eocur.
,horit1. ,nada fOr the sole purpose 3t 80 on
Ing commissions on INSURANCE Cis,,es
applicants own property " g.,
t-,lsss the applicant can answer '''c ~.
two Of these questions in the ann -, ,.a,i
and the others n-the negative he =
- .o, o. state license, and WlI"ou' Q
80 license he can receive no oloHO'
-,.,,,;sei,, Tho clause i'm the Ia" NH'''
ID - p,e inclusion Of these four QueS'i0''.
4. ,ha ticorso blank is aimed pr'nclpa'!S -
~. ,orc, nruber Of lawyers or law Vie' ~
r. havo beeu enabled TO set nroAe'S :"
,oress and keep for themselves VI 80
.f,,e the commissions on al l!ls I"S"'
bought by their clients ...s,o,da o =
s,,arfnterdert HotchkisS sal" Hes''i &C.
,h,, .b- action Of the new law "ou'" 80
,,,etv eliminate this class OF hroNer' ''l'
,,,ce Of inspectors is not sufhdeht 10 III
..oe,ipate the status Of all apphcai''S io'
f,olcr.' licenses. but any complaint asa'"''
o. broker who has answered the q"eS S,'oI'a ',,'
referred 10 as prescribed VIII DC ."i'''''T -,
looked .nio and violation Of the Id" W."
-. ,>itb - q fne for both the uFUN0'
~ ,b. co,rauv which pays him MS com
...t..to,, and a prosecution OF the proNe'
for perjury sa &C. large
.rte volume Of business affected Is larS'
so,,e insurance men placing 1t q" h's" a.
o., ore-,hird to one-half that trahSd' 'ou
ID, &cv. York CITY. one independent p'oN''
,stir,sted Yesterday that of the %" proNei
helo,o,nc to the Fire Insurance tNc'd'S'
st,,,, 51o were LAWYERS or law clerks tax
t,,, oo,,r,iesiops OF clients business. vi
- o,bar hand. another broker higher Jul
10 councils of tho ,Nchauge thought inns
,e,t,,,tc a decided exagCeration. saving the
o,.bsroe Of late wears had weeded OUT d
largo number Of brokers WIN N''o''' '''
snce was an ayocauon. -
Both agree. however. that the abuse doeS
exist i'm the nre insurance field and TO even
2 larger degree lN lII' NH'''' ''
cor,nanles nave been paving for years eA-
orbitaut commissions 10 lawyers 10 "lohl
clients have intrusted the business OF get
ing them bonds Receivers, contractor =
r.ublic officials. Htlgants, executors auup"-
i-trotors. guardians and oil the rest or the
army which must file bonds OF varying
amounts as pledges of good ialth nave
haon paving their lawyers 10 saleguaro
their interests. while these same lawyers
have been demanding from surety compa
MES % and p per cent commissions on the
hand premiums which their clients pay.
The anti-rebatins law has made it Illegal
,or laOvere 70 engage in this practice with
out brokers licenses. This is true also IN
nh other fields Of insurance except lie ano
marine. which are separately provided for
Now there comes along law which makes
II illegal for lawyers TO get brokers' H.
cenSeS.
1T is our object said Superintendent
Hotchkiss. "to make insurance brokerage
profession. to compel those who engage II
# % give il the attention it demands.
4 member OF a, Law firm in Wall stree
which has been taking in annually sbou
S. 0o0 in insurance commissions through the
possession by one Of its clerks of broker
license admitted Yesterday that in the fu
,ure il would have To forego absolutely thi:
part Of IS income.