New-York tribune., 1912-01-30
RISKS OF 70 BILLIONS
Hotchkiss Gives Fire and Marine
Fiuures for State.

,. On The annual report VI
- e,,,orIrtendept Of Insurance "o -
,,,I,,od IN the Legislature to-his"' lido
-. .hogre among other things u'e -.
- n insurance supervision 'h
-. T., that Il includes not only u'e
.ortos but scores o. co''po,''
IT.. Gro marine. casualty. surety
- ,.sessuent insurance ho'o"
,.a, ,e that during 1911 the supply W
.,,o Insurance i'm New Norh ""'
a''' ..-oosod nv the admission OF slNtee"
.,,,rapiee Of other nations anu -,
-. a.. insurance and three forels"
,,.,.,,,,,ies writing marine insurance "'
,,,aI NJ the risks Of the companies "u'''o
,z.d in New York was, as OF their lSS' a."
,ra, statements. go. O.a94. 100000; the total OF
,Isir assets. 4,5S2. 100000. and OF thelr d'-
NAL nroniurn income $i.0i3.oOoOOo.
-.5o renort discusses the work of the eA-
animation department and gives hs' VI
oil comnonIes examined during the year
II also discusses at length the legislation
Of 1911. and makes certain recommenda-
,,ors for amendment thereto In this con-
rection Il reviews the work as 10 insur-
snce of the last three legislatures. thus:
For tho Last three years efforts have
heen made 10 revise the Insurance law ny
The slow hut perhaps wiser process "t
specihc and successive statutory enact
rnents instead NJ hv the usual means
that Of a general revision commission. The
WORK Is hv no means vet completed. but II
is far along Many Inconsistencies in the
statute have been eliminated: special prlVl-
icges granted companies or classes or con,
nanies in earlier years have been removed.
The supply Of dependable insurance Of all
kinds. particularly In the fire REID. mas
been greatly increased the stability Of eX-
istinr authorized Companies-whetheT do.
nestle other state or fOreign-haS been
made more sure and the powers and func-
tions ~ the department have been very
considerably increased.
The rest Of the report is taken up with a
discussion Of several insurance problems Of
Importance just now. Among the matters
considered are: Promoters and promotions.
and tho licensing OF insurance stock sales
men by the department; more complete
supervision Of insurance agents and brok-
ers through the vesting Of broad dscre-
ton In the department as to the granting
Of licenses. particularly to brokers; insur-
anoe rates generally and the danger that
unless the same shall he substantially re-
duced. the people will determine TO insure
themselves through their respective gov
limitations on the expense factors IN insur-
snce rates. viz. commissions. home Office
salaries overhead charges. and the like;
the investments Of insurance companies.
particularly those In the life field. as 10
which a general revision Of the controlling
sections of the insurance law Is advised
the Standardization Of the policy contracts
I'm all fields. not merely IN the fire. and. 70
an extent life and casualty fields. as now;
compensation laws-the necessity OF which
Is conceded-but only after the adortion OF
constitutional amendment that will make
such laws compulsory.
The report also urges the need of more
popular insurance education. calls attention
70 advances which have recently been made
In conserving both life and property and
thus reducing economic waste and also IN
the unwisdom Of lapsing insurance that has
been once bought and paid for
Superintendent Hotchkiss suggests the
adoption by the Legislature of certain uni
form amendments suggested by the ma
tional convention NJ Insurance commisslo
u ers: one which will prevent runs on insur-
7 snce companies IN manic times through the
so-called loan and surrender value clauses
another to stop the practice of dating back
life policies beyond tho age Of the insured
- the time tho rolicv is taken. and a
'hird 10 prohibit tho furnishing by COM
rsnies or agents Of estimates ~ future diN-
6erds on participating policies
There Is also considerable discussion indI-
rating that. In the opinion of the super-
'rtendent, tho time has now come when the
complicated machinery surrounding the
elections Of mutual life companies should
Re modified and the heavy annual expense.
even when there IS no election al all large
ly done away with.
The work Of the department during the
last year. in connection with the proposed
naturalization Of the Equitable Life Assur-
ance Society. Is also reviewed. the present
trustworthiness of cooperative fire Insrr-
ance-which came under supervision two
wears ago-pointed out. and several aues-
tons Of interest to the insurance agency
field discussed
While In this report Superintendent
Hotchkiss definitely recommends only four
notifications in the law. and those having
10 do with administrative matters only. II
IS apparent that the report is intended TO
point out several matters seeming to call
for remedial legislation this year.