The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-07-01
Insurance Business in Utah

Tho state insurance department has
n,,aI n,eu Win Governor Spry Its third an
nuai report The report covers in de-
tall the business transacted bv insIr-
ance companies In the state during 19I1
ana also gives q list OF comDanics and
n,ths t,nses OF thelr representatives who are
SueIio'i"So 10 do business for 1912
commissioner Done says that the general
tEu.tiohs surrounding the transaction OF
,nsuf1nce yro,fnr business In the state are i'm
proving each year and decided adva noes
In this direction have been noticcabIe
IN the year 1911" 'As usual" saws the
commissioner, .some difficulty has been
npIiiienceo tn,'Ii,i, with companies that are at
tempting TO do business in the state
without compliance with law. and with
= ie" agents who are perssting In prac-
ices ,i which, II not in direct violation OF
oS o1S,hess .h as a whole, and the confidence
OF the public IN IT," The report then
goes on TO state that great difficulty has
troI1,,s geem experienced In the matter OF con-
tne fact that there exists n difference
OF opinion as to the authority of the
STATE STATE oulcials to regulate matters which
come largely under the direction and
supervision Of the federal authorities and
under the laws and regulations of the
postofifce department. The commissioner
that are attempting to write insurance
In the state without authority and has
received assurances that no further at
temDts TO write Insurance UonId ho
made,
The question OF the promotion OF local
companies Is regarded a very lmpor-
tant one. "A number of promoters. the
report says. have looked over the field
with the thought OF organizing and
launching life, FIRE and miscellaneous COM
panies. They have decided however,
that IL would probably not be opportune
for any new companies to be organized
AT RMS particular time, as the field seems
TO be fully covered. This has been es-
psecially the case In life insurance since
pany that commenced operations during
the year 1911, tho Intermountain Life
insurance OF Salt Lake CITY Unlike
the high pressure promotion schemes
Wnlcn have prevailed In other states
this company was organized on a very
conservative basis, and the promotion
was not attended by any questionable
methods OF high promotion expense"
The commissioner favors the enact
ment OF law giving him or some other
state official Jurisdiction over all insur-
ance promotion schemes and prohibiting
the sale of stocks to citizens until the
oificial In charge shall have passed upon
the merits of the proposition and found
1t sound and worthy
On the subject OF fire insurance the
report says:
THE totals Of the fire insurance busi-
ness show marked increase over the
business Of 1910. IS shown by the fol-
ed by fire insurance companies in 1910
amounted to sS22. 401 or in 1911 the
amount was sl,0SS.62S.s4. The losses
paid PAID in 1910 tota, s25s,s56 q: in 1911.
1888 1887. 1t will be observed from these
figures that the loss ratio OF the fire In
surance companies IN this state is re-
% %markaoly low A slight Increase Is
shown for 1911 over 1919, due to a few
destructive confagrations In some parts
Of the state, but the loss ratio OF 3 Ia
per cent shown by the figures given here
is so much lower than the general aver
age and so very much lower than the
ratio In some other states, that Il may
well be considered remarkable, Some
of the causes Of this low loss ratio
were detailed In my previous report. An
other reason for it Is the absence OF
the moral hazard 1t is gratifying to
state that fires from incendiary and 9TH
er doubtful causes are practically ,un-
are careless in these matters in common
with residents of other states, and while
as a result OF this carclessness. the loss
ratio both here and elsewhere i9 much
higher than 1t should he. practically none
OF this Joss can be traced either 10 ar
son or TO criminal carelessness. and
beyond control or OF such a character
as to yield readily to educational treat
ment."
Recommendations are made for fro
insurance department stands ready to
cooperate with any one desirous of cdu
eating the public along these lines.
ON the subject Of life Insurance, Mr.
Developments in that field. Reference is
made 10 the uniform bill for tho reGu-
laton OF fraternal orders and the ulu-'
mate effect of the new bill upon mem
bers OF these orders. Attention is called
10 the change OF the Bankers Life asso
citation OF pes Moincs, la.,. from an as
sessment company to the level premium
basis. The death rate IN Utah. the re-
port says, is extremely low, due largely
to the favorable climatic and ether con-
ditions In tho state. the abstenious
work of state and local health depart
mcnts" In the administration OF his Of
fec the commissioner says he has Jeal,
ously guarded the rights Of domestic and
''In line with this Idea have asked
the life Insurance companies doing busi-
ness in the state TO submit to me copies
Of all their literature and advertisements,
intending TO examine them with the
greatest care, and eliminate all that will
Tend TO belittle the great business or In
surance, and destroy the confidence OF
onisn in the public mind to insurance as
a whole without aony companies or their
representatives giving color to this preJu-
which throw doubt or discredit on solvent
and reliable companies or their methods.
There is ~ vast difference between rivalry
and antagonism, and ! am deterInlned: SO
while Keeping the former within reason
able bounds. In life insurance the day
oc cut-throat competition IL past anu, SO
far az Utah is concerned. there must be
"kCents who resort 20 unfair compe-
tition and the distribution Of mislead-
ing literature and the making Of deroga-
tory statements against competing com
panies or agents have fallen under the
ban of the department. Comparisons as
10 dividends. expense ratio, etc, may De
very misleading, and they are sure TO DC oe
when any of the conditions or the TWO
noIJcies are different. Such coInparl~
sons sons are Objectionable. and II IS to the
best interest OF ell concerned that they
References Is made TO the surety busi-
nese written In tho state and recon-
,nendation that the bonds OF state. CITY
and county officers be furnished ny cor