The Washington times., 1914-04-28
A NEW INSURANCE LAW.

A NEW INSURANCE LAW
The simple statement that the peo.
pie of the District of Columbia pay
annually more money fo- insurance
than they pay in taxes-say s6,O08,.
000-is quite enough to impress the
fact that insurance is a very prime
concern of the whole community
That the policy holder should be as.
sured of getting what he pays
for-sound, reliable protection-is
automatic.
This District has had lax insur-
ance legislation in the past, and
much of the time has had yet more
lax administration The average
citizen cannot be very we'll informed
about the intricacies of insurance,
therefore the more necessity for eff
fective measures to protect him.
When Charles F. Nesbit was
placed at the head of the District
insurance department three months
ago, the appointment was recog-
nized as excellent because he had
been for years in the insurance busi-
ness, and a student of civic and
social needs. He plunged at once
into an investigation of the Districts
needs, and as a result the Commits
sioners have sent to Congress the
Nesbit bill for reorganization of
local insurance law. The measure
deals with life, fire, and all the other
forms of insurance, embodying es-
sentials of measures heretofore pre-
sented by Congressman Prouty and
johnson and Senator Smith of Mary
land, with others added.
Thus it is required that new COM
panies shall submit their literature
soliciting stock subscriptions to the
insurance department for approval;
that not exceeding 10 per cent of
stock shall be used for organization
expenses; that no dividends shall be
paid except from earnings: that
where expenses or salaries are ex-
travagant the superintendent of in
surance may order reductions; that
all policies issued on District prop
erty shall be issued through
licensed resident agent. No con-
si6eration. rebate, or advantage not
stated in the policy shall be paid or
given, in line with modern practices
against rebates and determinations.
When it comes to fraternals or as
sessment concerns this new law pro-
Vides that any association having
death claims not in litigation, or
judgments, six months old and un-
paid, shall be ordered by the super
intendent to levy assessments to pay
such claims, and if within sixty days
they are not paid, he may cancel the
license, or apply for a receiver.
The simple prohibition against in
surfing "any child under one year
DID," and other equally suggestive
provisions, would seem to indicate
the reed of new law.
The bill is direct, plain, and ex-
ceedingly brief considering the reach
and effect of it's sixteen sections.
Mr.. Nesbit feels that Washington
should be an insurance center. and
says unless within a short time it's
insurance interests increase he will
feel disappointed. He has called the
of the Board of Trade and
Chamber of Commerce to the great
and increasing business of insurance,
that Washington should
be the home of many large and -four
ishing concerns. lie is right in at
tempting to have the laws here
brought up to the high standard of
Massachusetts and New York, where
the beneficial results of sound laws
ard strict supervision are to be
by the billions of insur-
ance assets held by the companies.