Daily Kennebec journal., 1914-01-02
STATE HOUSE.
New Laws in Effect Jan. |
And Their Meaning.
Copies Of All Insurance Policies
Filed with The Commissioner.
blue Sky Law" HaIts the Worii.
less Securities Game.
STATE HOUSE CALENDAR.
Regular Meeting of the Governor and
Council at 10 A. M. Wednesday, Jan. 21.

Council at 10 A. M. Wednesday, Jan. 21.
Two laws of special interest one re-
lating to the State Insurance depart
ment and the other to the Bank de-
partment, went into effect Thursday,
the first day of January. And to the
people who reside in Maine, the study
of these laws and the changes which
will be wrought by them will not only
be interesting but profitable as well.
The new insurance law comes under
the head of STANDARD Provisions for
Accident Policies" 1t states that:
"On and after the first day of jan
uary, 1914, no policy of insurance
against loss or damage from the sick
ness, or the bodily injury, or death of
the insured by accident shall be is
sued or delivered to any person in the
State until a copy of the form there
of and of the classification of risks
and premium rates pertaining there
to have been filed with the Insurance
Commissioner; nor shall it be so is
sued or delivered until the expira-
tion of 30 days after it has been so
filed unless the said commissioner
shall sooner give his written approval
thereto" And the law further makes
it clear that in case the commissioner
notifies in writing, the company, cor
poration, association, society or other
insurer which has filed such form
that it does not comply with the de-
mands of law, or in his opinion any
particular section or clause is objec-
tionable and specify the reasons for
l. 4.
the insurer to issue any policy in
such form. In this regard the action
of the insurance commissioner shall
be subject to review by any supreme
judicial court.
The second section of the law de-
fines the conditions under which the
policy may be issued. There are five
of these conditions in all. First, no
such policy shall be issued or deliv-
cred unless expressed in the policy
are the entire money and other con-
siderations. The second condition
makes it necessary that the time at
which the insurance takes effect and
terminates be stated in the portion
of the policy preceding it's execution
by the insurer. Thirdly, every printed
pun iitii tiiSttol anu IL ciily
ments or attached papers must be
plainly printed in type of which the
face shall not be smaller than ten
point. The fourth condition makes it
necessary that a brief description
thereof be printed on it's first page
and upon it's filing back in type of
which the face shall not be smaller
than IA point. Under the last condi-
tion no such policy shall he issued or
delivered unless the exceptions of the
policy be printed with the same
prominence as the benefits to which
they apply There is a proviso, how
ever, that states that any portion of
such policy which purports, by reason
of the circumstances under which the
loss is incurred, to reduce any in
demnity promised therein to an
amount less than that provided for
the same loss occurring under ordi-
nary circumst stances, shall be printed
in bold face type and with greater
prominence than any other portion of
the policy text.
The other law referred to, which
went into effect on Jan. l, is the So
called Blue Sky Law, passed by the
Legislature a year ago. 1t is expected
that this law will bring to an end in
this State the sale of worthless Sc
curities, which is said to have ham
pered the circulation of money and
prevented many from investing in any
kind of securities. It was announced
Thursday morning at the office OF the
State bank commissioner that So deal
ers had already applied for registra-
tion and licenses under this law, and
that this number covers the dealers
alone and does not cover all the men
concerned. The State Bank Commits
sioner recently put checks into the
office of the State treasurer amounting
to over $500. These included the reg
istrations of both dealers and agents
The Kansas law was the first of
this kind adopted in the country. The
Maine statute differs from the Kan
sas law in the fact that while the
Kansas law is based on the common
law of fraud and deception, the law
of our State is based in the intrinsic
worth Of securities sold. But the re-
suit of the law here will be the same
as the result of the Kansas law ac-
cording to statement made by Har-
ry M. Smith, State bank commits
Sioner.
BY the Maine statute statements will
be demanded of people selling highly
speculative securities and a close
watch will be kept on their business
dealings. And the State will be freed
from the statesmen Of different cor
porations, who have in the past sold
securities and taken thousands of dol
lars out of the State without having
anything Of real value to offer.