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

establish an insurance department to
supervise and regulate the activities
of insurance companies in Hawaii,
Territorial Treasurer ID. L. .Conkling
has submitted to the legislature a
report that hits straight from the
shoulder.
As a result of his opinions backed
Up by the array of facts he presents
a bill establishing such q department
is expected shortly to make les ap'
pearance in the. senate. treasurer
Conkling Is not fostering the bill, &C.
cording to the senators, but his work
as insurance commissioners has
brought out facts and figures which
have suggested the necessity foI
early legislation.
The report submitted today is the
fifth biennial report of the commits
sioner, for the two years ending De
cember 81. 1911. In brief but EN-.
phatie note which prefaces the pages
of valuable statistics in the printed
document, the treasurer says:
ITO the Honorable Senate and House
of Representatives of the Legisla-
ture of the Territory of<HaWaii.
Gentlemen: In compliance with
chapter LOO of the revised laws, as
amended, herewith is submitted for
your consideration the biennial report
of the department covering its trans
actions for the calendar years 1910
and 1911, and showing receipts and
disbursements to the last day of De
cember, 1912. 1T is impossible to
give the figures of insurance transact
ed for the calendar year 1912 at this
time, as under the present law the re-
ports of the several companies are
not filed until the first day. of June OF
this year.
The legislature of 1909 in its wis
dom saw fit to do away with, the sal
airy hitherto paid the deputy insur'
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 II
Tot 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
ritory to December 81, 1919, SIG,
03762, while in that time the fees
licenses and taxes collected have
amounted to $17S.065.19.
Insurance is becoming such a fac.
tor in this territory that the business
should be now handled by trained
insurance man with competent assist.
ance. Neither your commissioner MOI
deputy are trained men and on &C.
count of their lack of knowledge oil
the business are falling far short oil
what might be accomplished by ths
department If it were properly organ
lied and differed.
The total insurance written during
the years since the organization OF
the department has increased from
$36,500,O00 in 1903, to $96,000,000 in
1911, and premiums paid on same
have increased from 100000 in 1908
to 81, 45O, 900 in 1911 During the same
time the department collections have
increased from $1,000 in 1903, to
. $4,000 in 1911.
TO more satisfactorily carry out
the intent of the insurance law under
the present organization of the de-
partment, it would be well to SC
amend the law that the tax to be col
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 1st, as un-
der the present law 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 a matter Tor
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 for 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 no reastll why
the scheme should not work out sue
cessfully in this territory if the inter
ests of the members are properly
safeguarded by 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 its way
back in taxes, losses paid and com.
missions to agents"