Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1912-01-09
TUESDAY, JANUARY 9, 1919.
INSURANCE MATTERS.
Commissioner McMaster Makes Some
Interesting Recommendations.

At present the insurance depart
ment has in mind only one piece Of
legislation to propose to the next gen.
eral assembly. Stated concisely, this
| is:
That all life insurance companies
doing business in this state, If pos
sible, should be induced to invest the
funds which they hold In trust for
the people Of this state only in the
securities Of this state, such as mort
cages of real estate, state, county and
municipal bonds, and such like securi-
ties.
AS Is we'll known, until the estab-
lishment of the insurance department
practically all of the funds held in
trust for South Carollnians were in
vested in securities Of other states.
Since the establishment Of the insur-
ance department, by means of wise
laws and incessant urgings by the in
surance commissioner, more than half
Of the companies have changed their
methods, and have invested, or are
investing, the funds which they have
belonging to South Carolinians in
securities of the state.
But there are a number Of compan-
les, regardless Of the fact that they
already have large amounts Of South
Carolina money and are taking more
each year, practically refuse to invest
in any South Carolina securities.
The insurance department will ask
the legislature to go after these last
named companies and make them pay
higher license fees than those compan-
les which do invest South Carolina
money in South Carolina securities.
The proposition Is that all companies
which have invested, or which will in
,,rft, 0f rn
lima reserve in South Carolina secur-
tiles, be taxed as they are now, but
that companies which will not do this
be taxed per cent, instead OFF, per
cent, as at present, on their premium
receipts. But so soon as they make in
vestments their taxation will be re-
duced.
This is the only proposal which the
department has to make to the gen.
eral assembly,.
Summarized, the reasons for not
making other proposals are as fol-
lows:
The fraternal insurance condition
in the state Is especially satisfactory
as compared to conditions through
out the United States. I think 1t may
be said that the fraternal orders IL
censed in South Carolina are the high
est types Of their kind in existence.
No fraternal orders not now licensed
may hereafter be licensed unless 1t
can guarantee that 1t will never in
crease its rates Of assessments. While
this does not apply to the orders now
licensed, as they were In the state
before the passage Of the law, yet 1t
protects them from insidious compe-
tition, and will enable them to adjust
themselves unmolested to new ne
cessities as they arise.
I do not suppose that perfectly sat-
isfactory fire insurance conditions ex-
ist anywhere, unless 1t be in England,
Germany, France, and several other
European countries, where people are
allowed to build houses only under
government direction in respect to Sc
curity from fire, and where not only
incendiaries are punished, but every
one else who causes a fire by negli-
gence. I think 1t may be said, how
ever, that fire insurance conditions
in South Carolina are about as salts
factory as in any other state OF the
union, and very much more satisfac-
tory than In many states, where con-
ditions of turmoil exist. The cotton
mills, oil mills, lumber mills and such
like industries, have opportunities for
placing insurance in licensed COM
panies, which obtain in only a few
other states, as there are companies
carrying these risks which are licensed
only in South Carolina, the New
England states and a few other states.
The accident and health insurance
conditions have been pretty well
Strengthened out and, as q whole, are
on a satisfactory basis. The same may
be said of fidelity and surety. and most
Of the forms of casualty insurance,
with the execution of emDlOyerS' LA
bility. think 1 may say that employ
ers' liability insurance Is in a very
satisfactory condition, not only here,
but everywhere else In this country.
The department Is giving considera-
BILE thought to the matter, but 1t is
a very intricate subject, and IL there
be a master Of 1t in the United States
he has not yet been recognized as
such.
F. H. McMaster,
Insurance Commissioner.