Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-04
C0NMHVG URGES
INSURANCE
/. DEPT.

Declaring that the territory should
establish an insurance department to
supervise and regulate the activities
iof insurance companies in Hawaii.
Territorial Treasurer d. L. Conkling
has submitted to the Legislature a
report that hits straight from the
shoulder. 90
+ Az result Of his opinions backed
Up by the array of facts he presents,
bill establishing such q department
/ is expected shortly to make its APP
pearanee in the senate treasurer
Conkling is not fostering the bill, ae.
c0rding to the senators, but his work
as insurance commissioner has
brought out facts and figures which
lave suggested the necessity for
early legislation. 80
/ The report submitted today IL the
4 fifth biennial report Of the commits
1 sfonef, for the two years ending De-
1 cefhber 81, 1911 In a BRIEF but en-
phatic note which prefaees the pages
| of valuable statistics In the printed
d6cadmef1t, the treasurer says:
ITO the Honorable Senate and House
dofs Representatives of the Legisla-
| tilfe of the Tefritory.0f Hawaii:
"0entlenhen:a In compliance with
/ chapter 1853 of the revised laws, as
amended, lierewith is submitted for.
your consideration the biennial report
| of the department covering It's transa
actions fef: the calendar years 1910
and 1911 aud showing receipts and
disbursements to the last day Of De-
cembef, i91Z.s Ills impossible to
| give the figures OF insurance transact
ed for the calenlar year 1912 at this
time, assundef the present law the re-
ports of the several companies are
not fled uhtil the first day of June Of
| this year. rs So Il sss = - -
"The Legislature Of 1903 in its Wis
DOM saw ut to do away with the sal
arys hitherto paid the deputy inslirs
ance commissioner which placed the
handling of the AFFAIRS directly on the.
commissioner and the registrar OF
public accounts, who since then has.
been deputy Insurance. commissioner.
The department is one Of the best IL
not the best, paying bureau of the
entire territorial government as far
! as returns for outlay are considered.
Since the organization in 1903 the in
surance department has cost the ter
ritcry to December 81, 1919, $16,-
| 037.62. while in that time the fees,
licenses and taxes collected have
amounted to sI78,065.19.
Insurance is becoming such fac
| tor in this territory that the business
should he now handled by a trained
4 srsc y 100. oraf- fCf-
ance. Neither your commissioner nor
| deputy are trained men and on &C
count of their lack of knowledge of
the business are falling far short of
what might be accomplished by the
department If 1t were properly organ
lied and Differed.
The total insurance written during
the years since the organization of
the department has increased from
! $50, 100000 in 1903, to $96,080,000 in
1911, and premiums paid on same
have increased nom, $500, 200 in 1903,
to $a.45e,0 600 in 1911. During the same
time the department collections have.
Increased from S1l 900 in 1908, to-
$29. 600 in 1911. assts
To more satisfactorily carry out
the intent of the insurance law under
the present organization of the de-
partment; it would be we'll to so
amend the law that the tax to be COLI
lected' on insurance premiums should
be on the gross premiums OF all kinds
received by the companies during the
year. The date for the issuance Of
licenses 10 the companies doing bust
ness in the territory should be
changed from April to July LIST, as un-i
der the present law a, license is issued
to do business for year and in all
cases the tax. due the territory for
business done is not paid until four
months after the license is issued.
The policy OF the territory itself
entering the insurance field; as is
done in Wisconsin. is matter for
presentation to you by the executive
also the advisability OF an amendment
to the present insurance law permit
ting local mutual benefit fire insur-
ance associations to be formed in the
territory Tor the purpose Of insuring
members against fire loss without the
necessity of paying exorbitant premi-
ums for the protection. Such mutual
associations are in operation with
great success throughout the main
land, especially in the farming COM
munities, and there is noN reast\i why
the scheme should not WIZ odt sue
cessfully in this territory il the inter-
ests of the members are properly
safeguarded Ey law.
In closing will state that the
millions of dollars collected in the
territory since 1903 by foreign COM
panies in premiums on insurance 9TH
er than life insurance, only small
percentage has ever found it's way
back in taxes, losses paid and COM
missions to agents"