The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-04-17
Timely Warning Repeated.

| The state insurance commissioner has
| from time TO time called attention TO
what are known as nter,insurance.
| reciprocal and Individual underwrit-
ers or associat tions. comprising small
| groups of property interests engaged in
| mutual fire Insurance underwriting on
| small scale and operating in Utah ana
| other western states. Commissioner Done
| has warned those who are taking fire IN
| surance in these concerns that they are
doing so at their own risk, and strongly
| urges the placing OF policies with com.
! panics that have been duly licensed and
| have authority TO do business within the
state Of Utah.
The Insurance Field In a recent edi-
| torial says the companies referred 10 are
assuming more Importance and useful
ness than they actually possess" Con-
tinuing, IL said: The American Recip-
rocal Insurance association OF Kansas
City through its secretary. R. F Gilken-
! son. has just Intervencd with an appeal
| By clrclar letter 10 large property own
| imposes a tax OF per cent on ali pre-
miums paid TO companies or associations
not authorized to do business In the state
and making the premium payer liable Tor
| the tax and punishable IL ne fails TO re-
| port it"
Commenting further along these lines.
| the paper says:
ut is notable that the appeal Is TO
large property owners only who will get
| all the benefit Of a defeat OF the tax,
leaving the vast army of small property
|
and bear the expense Of state revenue and
the cost OF insurance supervision. The
appeal is based on the old cry that fire
insurance Is a combine and that every
| citizen has an inalienebe right 10 make
| his own contract OF insurance anywhere
and with anybody. But the various
ground that the citizen hasn't any such
| right unless taxes and fees are paid to
| the state. Why should reciprocal or
other interchangeable back-scratchers be
| o. an allowed
| sound and solvent companies? They may
use the courts, they even steal the rates
they use from legitimate companies that
pay for their ascertainment-why should
not these begears. then. pay something
for the. scraps they scramble for at re-
spectacle rates. Why should they be
their way decently. what are they doing
in business?
Generally speaking, these inter-insur-
ance movements are of little or value
in the scheme of economic adjustment
| that gives use to insurance. The Illinois
| fire insurance commission said Of them:
Lhey do not serve the community. but
groups Of individuals. They render not
a common service but preferential serv-
Ice to favored few They ignore the
| state and contribute nothing TO its rev.
enue. Their tendency is TO ipcite dis
crimination, thwart attempts to estab-
lish order and system and excite public
| sentiment against forms of insurance done
! In compliance with and IN recognition
OF law Pretty strong. but true Inter-
! insurance is sort Of grating on small
scale OF the benefits of great. ncces
sary public service. 1t cannot exist eX-
| cept as a parasite upon legitimate insur-
ance The only useful office il performs.
and that very small one. is to indicate
| the lowest cost rate on some classes of
| property, and II does tnat only because
II escapes its share of taxation and the
common burdens. Everywhere it should
| be made 20 pay taxes other insurance
| does. -or to keep off the reservation
Life Business in United States.
The life assurance companies doing
| business In the United States issued new
| paid business in 1910 aggregating
s1.SS7 900, which was S142: $4,000
more than in any previous year. The
| ordinary insurance In force amounted to
| 1925, ,S36. 900. which was a gain of sT12.-
| 10000 over the previous year. Adding
| TO the ordinary business the industrial in
surance in force, the companies doing
busne IS in this country, according 10 the
annual compilation OF the Spectator OF
New York. stand obligated TO pay the
| tremendous sum of s16,333, 600, 900. The
| assets in hand amount TO $3,S73,5O0 900,
| OF which over S651 .326 900 is surplus. a
| large part OF which is already appor-
! toned for future distribution Last year
HE policy holders paid I'm premiums
about 1898 $500 900, while the total cash
| Income from all sources was S779.343. 600.
! To the policy holders and their bene-
| llciaries the companies paid about 1857
! 3330O0 and added to their assets S229,-
| s.
This indicates. says the Spectator,
that the companies paid all expenses out
or income other than premiums and saved
| some $4,000 600 in addition The fig
ures given are from the statements sub
mitted by 2o9 insurance companies to the
various state insurance departments.
Rights Not Forfeited.
The Modern Woodmen of America and
several other fraternal orders writing
| life insurance exclude saloon keepers and
| have several other prohibits ocCupa-
| !ons, Claims frequently arise where a
man who became a member while en-
gagged In one OF the permitted occupa-
| tlons transfers afterward TO the pro-
| hibited list. Robert j. Matthews, who
| Joined the Modern Woodmen al Kansas
| City while a jeweler and afterward be-
J came a bartender. keeping up his dues
! IN the order, died and payment was re-
| fused on the ground that the bylaws ex-
| Guided bartenders from membership. The
lower courts upheld the fraternal order.
versed the decision. holding that the
! indemnity was not forfeited by a pro-
| hibited occupation unless death result
ed therefrom.
Encourages Home Companies
! Every state ought to have its own life
! Insurance company" says. President De-
! Boer OF the National Life Of Vermont.
II do not believe" he declares, Ftlat life
insurance should be centralized. Every
state should have strong life company"
| He believes that life insurance is best
handled when the business in any state is
done by a home company whose manage
ment is familiar with the field and the
conditions and viii expand into adjoin
| Ing territory only when expansion is
| warranted,
Accepts New Position.
Frank Mozley who for the past ten
years has been connected with the Met
| ropolitan Life in this city as agent and
deputy superintendent has resigned his
| I,,,S inn to he .rI,,