The Dickinson press. (Dickinson, Stark County, D.T. [i.e. N.D.]) 1883-1927, 1914-04-04
STATE INSURANCE j; DEPT.

w. C. Taylor, Insurance Com
B. missioner, Warns People Not :,
;. to Take Outside Insurance :.
( State Bonding Co.
4 Invalid.
d On April 1, w. c. Taylor, state
commissioner of insurance, issued an
interesting bulletin on matters con-
nected with his office. Among other
things the following is noted:
Information reaches the Depart
ment that a considerable amount of
fire insurance covering risks or pro-
,perty situated in North Dakota is be-
ing written by brokerage concerns To-
Gated outside of the state. Such prac-
lice is in direct conflict with both
the letter and spirit of the provisions
.of Sections 4508, 4509 and 451O, Re-
yvised Codes 1905, and must be dis
continued. The language of Sec. 451O
is clear and unequivocal:
43 rs "No insurance company or associa-
hon, not Incorporated under the laws
of this state, authorized to transact
business herein, shall make, write
place or cause to be made, written or
placed, any policy, duplicate policy Or
contract of insurance of any kind or
character, or general or floating pol
icy, upon property situated or locat-
ed in this state, except after the said
risk has been approved in writing by
an agent who is a resident of this
state, regularly commissioned and
licensed to transact business therein,
who shall countersign all policies so
issued and make a record of the same
on books provided for that purposes
and receive the commission thereon
when the premium is paid, to the end
that the state may receive the taxes
required by law to be paid on the pre-
MUM collected for insurance on all
property located in the state, and the
agents paid the commission thereon"
Obviously it is not only the purpose
and intent of this provision to secure
to the state the payment of taxes re-
+quired by Sec. 4475, R. C.. 1905, but
to protect the rights and interests of
the resident licensed agents, as well.
IS. The Department. therefore holds
that it is contrary to the law of the
state Of North Dakota for a 1,on-resi-
dent agent to write or place or to do
anything in connection with the
writing or placing Of insurance upon
property or risks within this state.
Also that it is contrary to the law for
any company to secure policies sign
ed in blank by resident aegnt, af-
terward to be filled in and completed
by nonresident agents; but that all
policies issued must be completed by
a resident agent, complete record
made Of policies when same are issu-
ed, the premium collected by a resi-
uSAv o6CAVS Sauu IIle COLuul1SSlOn d.
State Bonding Law Invalid
During the past two months this
Department has received numerous
requests for bonds to be furnished in
accordance with the terms and pro-
visions of chapter 1914, Laws 1918,
In a decision rendered by the Su-
preme Court of North Dakota on Dec.
20, 1913, the State Bonding Law
was held to be unconstitutional and
Invalid on the ground that the Act
delegates unwarranted legislative and
Judicial power to administrative Off
GERS; that it provides for taking the
property of counties, cities and other
subdivisions of the state without due
process of law. AS result this de-
cision the state bonding department
has never been established, and no
bonds are issued by. the State. 4 (.
Pioneer Life Examined
During the month of January an
examination Of the condition and af-
fairs Of the Pioneer Life Insurance
Company, Of Fargo, N. D., as of Dec.
S1st, 1918, was made jointly by the
Insurance Departments of North Da-
kota and Minnesota. The following
figures are taken from the report of
examination: .
Ea Amount of can;ta1
paid up in cash .......-..$ 100000 &
Amount of ledger as .g~.
sets Dec. 31st, Of pre- q
ylious year s17,2e421 /
Total during year
1913 ................ $3.50 -. e7s,o75.s5 !.