Arizona republican., 1913-02-06

 OF INSURANCE
State Examiner Plunkett Recommends Changes In Insurance Code, Regula- tlon of Business, Fees and Examinations.

In special report upon the insur- ance situation within the state. Ex-
 aminer w. II. Plunkett has filed with Governor Hunt, the senate and
 house of representatives of the state of Arizona a number of suggestions
 for embodiment into the insurance code of the state, which are calcu-
 lated in his opinion, if enacted into
 the statutes to increase the state revenue by at least $5OO0 q year. as
 well as to afford protection to the
 policy holders of the state. they can
 obtain in no other way than by a
 thorough knowledge Of the condi-
 ton Of the companies
 MT. Plunkett states that at pres
 ent all the foreign insurance com panies are required to do is to file
 "a statement giving the name of the company, the amount of capital stock paid in, the amount of the as
 sets and liabilities and the surplus
 to policy holders He complains
 that they are not required to file an
 nually a full statement of their con dition so that their Solvency or re- i liability may be determined The present laws seek protection by re- quiring q bond, the conditions of which are so finely drawn as to make recovery probematical"
 He recommends that the public be protected by laws, which will su- pervise their operations, which will prescribe the amount of cash capital and surplus necessary to transact each kind of insurance which will specify and restrict the kind of se- ! curities in which the assets may be 1 invested and which will provide for ! the maintenance of the proper legal | reserves. This code should require | all companies to make statements l annually of their true condition; t0 l pay taxes on business written in the 1 state: to pay an annual filing and 1 registration fee; to use standard 1 forms of policies; and to secure tc 1 the public the right to bring action
 against foreign corporations in the 1 state courts
 The code should also" says Mr | Plunkett, provide a penalty for mak- | ing false statements; and for the 1 collection or any items of expense in cured by the state in inspection ! examination or investigator of the l StHtIdl tbHullbH bI tDe companies. ] There is however one very i'm portant matter that I desire to bring
 10 your attention and that is the in- l surance placed by some of the large | interests of the state. These com panies are placing their insurance 1 with eastern underwriting firms no authorized to transact business il our state. and we do not receive any 1 revenue which is due the state iron | the premiums paid on the insurabl, interests within the state. In tho code there should be q section bear l ing upon such transaction givinl the delegated officer or commission of the state power to examine tht | books of such large interests anC | should there be found eVidenc O
 such that they be required to pay | into the state treasury a certain per 1 centage Of such premiums and in de. 1 fault thereof be subject to q pen.
 alty receiveable in any court O competent jurisdiction"
 Accompanying the letter was tn, | code proposed with the sections SC out to meet the recommendation O l State Examiner Plunkett The mat ter was received and read in the sn- ate and referred to th appropriat, 1 committed