The Forrest City times. [volume] (Forrest City, Ark.) 1871-1919, 1913-02-14
NEW INSURANCE
BILL IS DRASTIC
SENATOR CoVlNGTON WOULD
REVoLUTioNizE METHODS OF
CONTROL IN STATE.
WOULD CREATE A BOARD
Would Have Power to Central Rates
Summon Witnesses and Visit
Other States.

western Newspaper Union News Service.
Little Rock.-Haying for its purpose
| the regulation of companies writing
| lire, marine and tornado insurance in
| Arkansas, bill was introduced in the
state senate by Covington, of John
son. which is complete, if not drastic
| III Its control of these companies. The
Dlll goes to into details, but first pro
| Vldes for the Insurance Board, which
snail have full control of the com
panles which come within the scope
| Of the bill
In the first section of t:le bill, it is
made plain that the provisions of the
act shall apply to all insurance in the
state, either fixed or movable.
The Insurance Board is to consist
| OF three members, with the state audi
| tor as chairman and for the services
thus rendered, $500 is tackled onto his
yearly stipend. The other two mem
| bers of the board are appointed by the
! governor, one for two, and the other
Tor three years, with biennial appoint
ments thereafter. The salary of the
commissioners is $4,000 per annusl,
and the board is empowered to employ
experts and clerical assistance, to pay
travelling expenses, but the total ex
| Eense of the board must not be over
5000 in any year.
| This board has the authority to fix
and control the fire and other insur-
ance rates, TO make and prosecute
general basis schedule with rules and
regulations determining the maximum
and specific rates therefrOm. This
board also issues certificates to the
companies which have complied with
all regulations, and to supervise and
control the rates OF insurance. 1t has
further power to decide all questions
regarding rates, and to hire experts
and inspectors to carry out its rulings.
The board is expected to ascertain
the annual fire insurance in force in
the state, the fire losses for each year
and the cause of these, with the pre-
miums collected and the losses paid
in order to determine what shall be
CA.ulldblt dtCS anu I'VE dl Il luetuOu
for reducing the same.
Not only is the board given the
power to summon and examine wit
nesses, but it may journey to other
states and examine the books of the
concern at will, and if the company
objects, the certificate TO do business
in Arkansas may be revoked The
board may require sworn statements
from the companies when they apply
for certificates. or at any other time,
regarding the business to be done, or
transacted in the past.
1t is provided in the act that the
companies may give lower rates than
those provided by the board. but they
must come to the front with it by
filing these reduced rates with the
city clerk. ana if there is no official Of
This kind. file it with the county clerk.
The board can also force the compan-
les to file their maps and all applica-
tions. Just to show the company is
doing business according to the rules
laid down b! the all high commits
sioners In addition 10 this, the board
has the righ. to pass upon all maximum
rates-in fact. they must be approved
before the board before they can be
promulgated On top of il all, any
policy holder may make application for
reduction and the board must go into
the case fully.
Power to give each city or policy
holder credit for the removal or haz-
ards or additional fire equipment, is
granted the board. and the Individual
may be given cre1it fer premiums not
earned by these improvements.
The board has the right to amend
the rates with so days notice, and no
policy may contain a clause which re
Quires the insured TO maintain a larger
amount of insurance than stated in the
policy, nor shall the policy contain 4
clause by which the policy holder
shall become liable as coinsured with
the company issuing the policy for any
part of the loss by fire or otherwise.
1t may be optional with the insured to
accept co-insurance clause where
there is reduction of the rate.
ANY CIVIC Douy AdS tue right 10 COM
plain of the rates and have hearing,
and if dissatisfied with the rulings of
the board, bring action in the chan
Gerry courts. but bond must be given
to protect the company.
There shall be no action in the
United States courts to set aside any
provisions in the act, under penalty of
cancellation of the certificate, and
there shall be no special raCes or dis.