The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1912-07-10
INSURANCE COMMISSIONER
' PALMER TAKES WALLOP At
ACKNOWLEDGEMENTS
Also Urges Better Qualifications
for Agents in Annual Report
to Governor
FLAYs WILDCAT METHODS
Says Many Agents Transfer
Risks TO New Firms and
Policyholders Suffer
NOM son correspondent.

LANSING. Mich. July 9.-Better
qualifications for agents and legisla-
ton TO abolish "get-rlch-quick" insur-
ance companies, are among theathings
advocated by Insurance Commissioner
G. A. Palmer In his annual report filed
with Insurance Commissioners G.. A..
Palmer In his annual report filed with
Gov. Osborn today
At the present time there are organ
lied and operating in Michigan. 1876
companies which come under the di-
rect and immediate supervision Of the
insurance commission In addition to
this there al three Canadian com
panies that have made this state their
state OF entry into the United States.
and are treated, therefore. as com.
panies OF this state OF these com
panies six are stock life insurance
companies, having total admitted as
sets amounting TO $2i,24S,650: four
fraternal and cooperative or assess
ment associations, having total assets
OF $19,l94 ,5S7: and 81 so-called Farm
ers' Mutuals The three Canadian
: companies have combined assets OF
over sl02.000.O00
Commissioner Palmer sets forth In
his report that to make an eXamina
ton OF any OF these companies re-
quires the undivided attention Of al
least two examiners for a period OF
not less than six to eight weeks. I'm
der the present law the department is
allowed one expert examiner AT sal.
airy OF $l.700, but when extra exam
liners are needed the law specifies
that they shall not receive more than
cooper Commissioner Pal
mer SAYS that the legislature should
correct this discrepancy by amending
the present statute so az to permit
employing more experts when they
are needed.
Il would recommend that a law be
passed providing for the payment OF
travelling expenses OF those examin'
ers, out OF the general fund OF the
state" says Commissioner Palmer.
The law should also require that the
companies examined should recon-
rense the state, not only for the ex-
psnses OF the examiners which IL has
paid but In addition thereto for the
salaries paid by 1t to the examiners
during the period OF such examina-
ton. This II seems, places the bur
len OF maintaining a force Of exam
iners sufficiently large to meet the re-
quirements indicated, upon the proper
persons the individuals receiving the
most benefit from such examina-
tons"
Commissioner Palmer strongly
urges upon the governor the necessity
for q blue sky" law similar to the one
now In operation in Kansas. He says
he Is not opposed TO the organization
OF new insurance companies, but he
does not approve OF certain wild cat
insurance companies that have en-
deayored to gain admission TO Michi-
gan in the past few years.
There seems TO be an impression
among a great many health and acci-
dent agents that the business which
they had placed upon the books OF
their company belongs TO them and
not TO the company, and should any
thing happen 10 sever their connec-
tion with the company, II is their
privilege upon forming new alliances,
TO 60 around and transfer that bust
ness to the new company that they
represent" says Palmer AS rule
the business is persuaded to transfer
by Misrepresentation and the public
unknowlngly suffers One who dis
holders for his own profit, is unworthy
10 be classed as an agent, and rot
only deserves the severest condemna-
ton. but should have his certificate or
authority suspended indefinitely. The
legislature should pass a law that will
effectually put stop 10 this dis
reputable business.
Commissioner Palmer advocates
that all positions in his department be
placed upon a civil service basis He
would also codify the Insurance laws
OF the state and increase the salary
OF the commissioner to $4,000. Pal
mer would also submit for the con-
sideration by the legislature the ques-
ton of reducing the specific tax upon
premiums of insurance companies TO
one per cert Of net premiums rece. eo
in the state proper allowances 10 4
made for return and reinsurance
premiums and dividends paid policy
holders, During the past year there
has been an increase In the receipts
Of the treasury, and now member
" the department OF s45.05S7l.