The L'Anse sentinel. (L'Anse, L.S., Mich.) 18??-current, 1915-09-04
s7s7. s7s.42 Receipts for Insurance.

e737. s73.42 Receipts for Insurance.
The gross receipts OF the state
insurance department for the last year
amounted to s737.S73.42. the great
est in the history OF the insurance
department. according to the forty.
nth annual report made to Governor
Ferris.
These receipts came over two
sources: The taxation Of the Michi-
gan premiums of insurance companies
OF other states and foreign govern
ments. the retaliatory fees exacted
from companies from other states and
certain statutory fees. The former.
amounting to 1855 .094.32, IL turned
over to the state primary school fund
and the fees of both classes. amount
ing to $51,S79.10. are in part used to
pay the running expenses Of the insur-
ance department. The expenses OF
the insurance department are less
than the fees alone.
This statement sounds good to those
who are bound to pay taxes to main
tain the state government. yet Com
missioner Winship says the system
is all wrong. explaining that every
dollar of tax on premiums exacted by
the state is drawn from Michigan peo-
pie by the insurance companies In
making up their premium rates.
Commissioner Winship says:
This would not be so bad were It
drawn uniformly from all citizens. but
It is only drawn from the provident.
those who realize the necessity Of IN
surance, from an economic stand
point. II must be admitted that the
taxation of insurance premiums is q
tax upon thrift and prudence. 80 long
as the department can be supported
by the retaliatory fees exacted from
insurance companies there seems to
be little practical sense IN exacting
the enormous taxation on premium
income from the companies, when It
is positively known that in making
ton cost, and our own people pay 1t.
II insurance we're q luxury there
might be an argument in favor Of this
peculiar method of doing business, but
It is not luxury; II is a necessity.
Life insurance relieves the drain upon
the poor funds of the various NUM-
cipalities and counties. end upon the
charitable institutions of the state.
and as for fire insurance, its abandon
ment would stop the wheels of COM
merce."
The retaliatory fees of the insurance
department have mad an additional
drain placed on them the past few
years. and 1t is growing year by year.
as the fire marshal's bureau is de-
veloping. The appropriation for that
bureau is derived from this fund. and
were 1t not that the Michigan insur-
ance department is conducted more
economically than that of any other
state in the Union. in the same rank
of premiums collected and elabora-
ton Of supervision, we would not be
able to meet tn demands of the de-
partment and Of the fire marshals
bureau out of this fund. The wider
scope that insurance supervision Is
assuming year by year will make. of
necessity, a greater cost of supervi-
sion, and the time is not far distant
when It Is doubtful II the retaliatory
fees collected will permit of operating
the department to its highest degree
of efficiency, and at the same time
meet the demands of the growing
necessity Of the fire marshal's bu-
reau. For this reason I am of the
opinion that the next legislature
should make direct appropriation
for the maintenance of the fire mar
shal's bureau wholly apart from the
fund created by the retaliatory fees
Of the insurance department.
Some interesting statistics are con-
tanned in the report showing the
growth of the insurance business in
the state since 1900 when, with 438
companies. the receipts for the depart
ment that year were $293.139.40. with
disbursements of $13.409.61. In 1914.
with 6S1 companies. the receipts were
$734,786.85 and disbursements were
81, 391.32.
The report shows there are now In
operation In Michigan SO. life insur-
ance companies, So casualty COM
panies, 16 life and casualty companies.
20 assessment companies. 80 fraternal
societies. and five reciprocal ex-
changes. or these companies and so
cieties, six life. six casualty, II assess
ment, 81 fraternal and one reciprocal
exchange are chartered under the
laws of Michigan.