The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1914-10-30
HAWAII TREASURER
RULES INSURANCE
Tax Laws Need Amendment To
Protect Public Against In
surance Companies

One Oh the lea0inR tnbufunco men OF
Honolulu stated yesterday that as i'm,
portant a duty az the new treasurer,
Col. G. J. Mccarthy, win have 10 at.
tend to is that Of territorial insurance
commissioner.
The Hawaiian laws are rather vague
as to the exact nature Of the treas
urer's duties in, insurance supervision,
his powers being discretionary rather
than mandatory. In the past the ruling
idea seems 10 have been that when the
Territory had collected fee from each
Of the companies doing business In Ha-
wall the entire duty Of the treasurer
had been performed. These fees
Amounted to over 100000 last year.
while the cost Of their collection was
less than $500.
Enormous liabilities
However, he said, when IL il taken
into consideration that policy holders
In Hawai- are now carrying over $l25,.
10000 worth Of insurance, all or a
large portion OF which might have to
be paid by the insurance companies in
case Of great eonfagration or other
general catastrophe affecting both life
and property, It h apparent that the
insurance commissioner owes some other
duty to the people of this Territory
than the mere collection Of the license
fees
This $l25, 100000 OF insurance repre-.
sents $2s,000,OO0 Ere protection, $50.
O00, 900 marine insurance, &17 900 900
life and about $50, 900, 600 fidelity, sure.
ty and miscellaneous risks.
Protesting the Insured
Since the Baltimore and San Fran.
cisco disasters practically every State
has taken cognizanee- Of the fact that
the insurance commissioner has a two.
fold duty to perform. Chief Of these
is that Of protection 10 the public-the
people who buy the insurance and pay
the premiums. Collection Of taxes IS
considered Of minor importance.
Every company that writes insurance
in Hawaii ought to be compelled toI
maintain sufficient permanent invest.
ments Of its surplus in the United
States so that should there be any oc-
casion for so doing the company can
be sued in the American courts.
unregistered Companies
There are a number of companies doing
business in Hawaii today that have not
one dollar invested in the United States.
Should the necessity for suit against
any. of these arise the only procedure
would be to call in the services Of the
consular representative Of our govern
ment in the home country Of the COM
pany, a costly and long drawn out pro-
eedure.
AZ IL the past the territorial treasurer
has apparently assumed that If the
Companies that entered this field had
been passed upon favorably by main,
land Insurance commissioners they
were therefore sound. War and disas-
ter have undoubtedly affected the as,
sets Of many foreign companies. What
ever has happened abroad as a result of
war. those companies which are COM
PEELED by State laws to maintain Ameri-
can Investments equal to a hxed pro-
portion based on the amount Of liabili-
ties assumed, win be able to weather
the storm completely, because they have.
these Investments.
New Legislation Required
There are also number Of concerns
that do business in Hawaii that have
no local agency or connection, and pay
no license fee TO the treasury.
There ought to be amendment of the
Insurance. laws by the legislature to
give the insurance commissioner deh;
mite supervision of all companies that
take any class Of liabilities or risks in
this Territory. Supervision must be
mainly to protect the public, but it
must also work both ways, and protect
the companies, the government and the
people. There are good many angles
to the situation, and this matter de-
serves thorough investigation by the
local commercial bodies.