The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1914-03-30
BULLETIN ON
+ INSURANCE
COMMISSIONER TAYLOR ISSUES
INTERESTING INFORMATION
CONCERNING INSURANCE MAT.
TERd-RIsks TO BE WRITTEN
BY RESIDENT AGENTS ONLY,

BY RESIDENT AGENTS ONLY
!, Insurance Commissioner Taylor ha.
issued the following bulletin:
Information reaches the department
that a considerable amount Of fire in
surance covering risks or property
situated in North Dakota is beint
written by brokerage concerns located
outside of the state. Such practice i!
in indirect conflict with both the letter
and spirit Of the provisions Of sections
1903, 4509 n 4510, revised codes 1906
and must be discontinued. The Ian.
guage Of section 4510 is clear and un.
e%quivocal:
mo insurance company or associa'
ton, not incorporated under the laws
OF this state, authorized to transact
business herein, shall make, write
place or cause to be made, written Oh
placed, any. policy, duplicate policy OF
contract Of insurance of any kind OF
character, or a general or floating
policy, upon property situat-
I'd or located in this
state. except after the said risk
has been approved in whiting 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 purpose 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 premium COL
lected for insurance on all property
located In the state, n the agents
paid the commission thereon"
Obviously it is not only the purpose
n intent Of this provision to secure
to the state the payment of taxes re-
quired by section 4475. r. c. 1905, but
to protect the rights and interests Of
the resident licensed agents, as
we'll.
The department therefore holds that
it is contrary to the law of the state
of North Dakota for a nonresident
agent to write or place or to do any
thing in connection with the writing
of placing of insurance upon property
or risks within this state. Also that
it is contrary to the law for any COM
pany to secure policies signed in blank
by a resident agent, afterward to be
filled in and completed by a non-resi-
ent agent; or for a resident agent to
sign slips of approval to be attached
to completed policies by nonresident
agents; but that all policies issued
must be completed by a resident
agent, a complete record made Of
policies when same are issued, the
premium collected by a resident agent,
and the commission allowed by the
company retained by the resident
agent.
1t is assumed that it will be un-
necessary to require of fire insurance
companies authorized in this state an
overhead writing agreement" or a
promise of conformity with the ruling
Of the department in this matter.
Companies will, however, be held to a
strict compliance with the terms and
! conditions of the ruling here
ed.
During the past year the following
companies have been admitted to
North Dakota:
Fire-Alliance Assurance Co., New
York; Bankers and Merchants Fire
Insurance Co., Minneapolis, Mimi;
Twin City Fire Insurance Co., Minnea-
polls, MINI. A.
Life-Liberal Life Assurance Co.,
Anderson, Ind; Montana Life Insur-
ance Co, Helena, Mont; Northwest
ern Life Insurance Co., Aberdeen, S.
D.; Twin City Life Insurance Co.,
Minneapolis, MINI.
Observation-Disclosures Live Stock &
Casulty Co, Bismarck, N. D.; Stand
ard Live Stock Insurance Co., Indiana
polls, Ind; Middlewest Loan & Trust
Co, Valley City, N. D.
State Mutual-North Dakota Farm
ers' Mutual Tornado & Cyclone Insur-
ance Co., Lahore. N. D.
County Mutual - Dunn County
Farmers Mutual Insurance Co. Man
ming, N. D.
Companies withdrawn from North
Dakota during the past year were the
following:
Life-Continental Assurance Co.,
Chicago. ILL.,; Meridian Life Insurance
Co., Indianapolis, Ind.
Observation-Disclosures Casualty
Co., indianapolis, Ind; Standard Live
Stock Insurance Co., Indianapolis,
Ind. .~ .~..-
Acknowledgements Order of Hep
tasophs, Baltimore, Md.
Mergers n consultations Of conf
punies authorized in North Dakota
effected during the year:
Calumet Fire Insurance Co., Chi
cago, reinsured by National Union
Fire, Pittsburg. Pa, Oct. 27, 1918.
Middlewest Fire, Valley City, N. D.,
merged with the Twin City Fire, Min
~neapolis, Mimi, April Is. 1918. In
demnity Life and Accident Co.. Min
neapolis, consolidated with Midland
Life. st. Paul, Oct. 90. 1918. American
ootiolHS SO.J bdlllIIloTe, HleTBeu WITH
Fidelity and Deposit: Co., Baltimore,
May 81. 1913. Title Guaranty g. Sure
ty Co.! Scranton, Pa. discontinued
business and reinsured with American
Bonding Co., New York, Nov. Is,
1913. 49, ~
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 1913. In
a decision rendered by the supreme
court of North Dakota on Dec. 20, 1918,
the state bonding law was held to be
unconstitutional and invalid on the
ground that the act delegates unwar-
ranted legislative and judicial power
to administrative officers; that it pro-
vides for taking the property of coun-
ties, cities and other sub divisions Of
the state without due process of law.
AS a result of this decision the state
bonding department has never been
established, n no bonds are issued
by the state.
Sound Advice.
In a. Agents Commercial Manual
issued by a certain well known
casualty company we find the fol-
lowing:
Experience has taught us that the
attacks made upon this company by
its competitors have done as much 70
hurt themselves and tt advertise us,
and to increase Il business, as ooe
| own prompt and liberal treatraauf of