The Washington herald., 1911-06-26

stated. It 10 now before the House Dis
trict Committee. N.
Legislation Proposed.
| It provides that ''heealth, accident, and
life insurance companies or associations
shall. within ninety days Of the passage
Of thS>act, have In assets or In capital
stock, fully paid up In cash. not less than
$4,000 as a capital or guarantee fund.
These assets may be invested IN United
States, municipal. or railroad bonds, or
In recall estate or mortgages, which must
be approved by the superintendent Of in
suranoe In the District Of Columbia.
Companies giving q greater accident or
death benefit than $500. or q greater
weekly indemnity than $40, must have not
less than 100000 invested and approved
as aforesaid.
All companies are required to pay a
| tax equal to / per cent OF all moneys
received on policies in the District OF
Columbia
Must State True Condition.
They are also required TO file q report
with the District superintendent Of in
surance on March 1. showing their true
financial condition, income. disbursements.
assets, and liabilities for the previous
year. and TO pay to tho collector Of taxes
so for filing such statement.
The power to Investigate these COM
panies at any time Is given TO the super
intendent Of insurance. and licenses shall
be revoked when violation of the law Is
discovered and not rectifed within sixty
days after notification. ANY company
issuing policies without q license is open
to q fine Of not less than so or more than
800 Per day.
The companies are given the right Of
appeal from the superintendent OF insur-
ance to the District Commissioners. The
latter's decision is final and there is no
court action provided for IN the measure.
Associations Exempted.
The law does not apply to relief asso-
Citations. not conducted for profit. COM
posed solely of officers and enlisted men
Of the United States army and navy. or
Of employees Of any other branch of the
United States government, or Of employees
Of any individual corporation 1t also ex-
cepts nonresident insurance companies,
whose regulation Is provided for else
where IN the District code.
The result Of the passage OF this act
on the small insurance concerns may be
foreseen. Some OF them, having $4,000
and $1,000 capital stock or less, will make
strong effort to comply with the law
and will survive. The others, ranging
from a zero" In assets and reserves UP
to 5000, will be driven out OF business.
The small companies Will make q hard
fight before the House District Committee
to kill the measure They are already
lining I'D their forces and have been hop
ing to escape publicity.
Insurance Companies Interested.
All The legitimate insurance companies
are greatly interested in winning the
fight. their agents being familiar with
the present conditions, which allow al
most anybody to start an insurace COM
pay. 1t was said yesterday that several
attempts had been made to secure the
cancellation Of the licenses of some of
these wildcat companies but that the
efforts had failed. One case was quoted
where q group Of solicitors In a local
company, tired Of working for some one
else, organized a company of their own,
and proceeded to collect assessments.
They had no capital beyond 800 and II
large number of claims had been made
they would have been unable to meet
them.
1t iE cases like this which lead the man
ayers Of the concerns to declare the
policies invalid or to find some similar
excuse for nonpayment. It is said that a
similar situation does not exist in any
other city. The District Commissioners,
Insurance Superintendent Ingram, and
many prominent insurance men are urg-
ing the passage of the new law,
watzx meters have been adapted 10 ring fog bells
10 save the expense Of employing . man for the