The herald and news. [volume] (Newberry S.C.) 1903-1937, 1915-04-02
iNSTRANCE BILL WILL
BRING STiTE MONEY
Commissioner McNaster Discusses
Proposed Measure Now III the
Hands of the Governor.

IlOEuS vi lIp UptSIH
The bill now in the hands Of tax
: governor Ito regulate the writing D
, certain classes of insurance and tc
: provide for the division of the com
missions" having become a matter O.
i newspaper contro. ersy and my att!.
tude towards the bill having beer
drawn into question, ask for publica
ton of this communication.
This bill! was drawn and enacted al
the instance of the Soutn Carolina as
sociation O: local insurance agents. II
was intended to make perfect the resi-
dent fire insurance agents law, apply
ing only to fire insurance, passed IL
1900 and 10 extend is provision to al
other forms of insurance except life.
When my attention was called l.,
the bill by tie legislative committees
On banking and insurance 1 applied to
it the test l try to apply to all .eg-
islation: how will it affect the inter
ests of the people of South Carolina ct
large?
found the bill, as drawn, would
practically force every company doing
business in South Carolina to do bust
ness through agents in the State OF
South Carolina.
So amended the bill if it becomes q
law will bring annually to South Car
olina some thousands OF dollars whicn
now, go to agents in Atlanta, Balti-
more, New York and other insurance
centers. These thousands OF dollars
will go, first, to local agents here, and
from them to other people in this
State, instead of now going to local
agents in other States and then to peo-
pie in other States.
The bill will not add one cent to the
cost of insurance to the people of the
State.
1t has nothing whatever to do with
rates. Any company can make any
rate it pleases without being affected
by the bill.
1t does not regulate the commissions
paid to agents. Each company can fix
its own scale of commissions to agents,
but it does say that if a company does
business through agents in South Caro-
lima it must do its business through
Il ose agents and pay them in the COM
missions and not do the business
through its agents in other States and
pay them the commissions on South
Carolina business.
This is the sole purpose and prac-
tically the only effect of the bill.
The bill can not affect any reinsur-
ance deal by the sinking fund or any
company. Reinsurance has a definite,
well determined meaning in the trade
and in the law books and to all in
formed and exact persons.
Fire insurance companies are sor-
hidden by the act of 1904 to make
discrimination in rates between South
Carolinians on risks identical in char
acter. Life insurance companies were
so forbidden by the act of 1908.
incidentally the present act may
prevent all other companies from so
doing.
If it mas this effect so much the more
commendable the bill, for it is against
equity and fair dealing for any kind
of an insurance company to treat in
dividuals Of the same class differently. !
"a company can make as many classes. !
founded on reason, that it wishes and !
it can make what rates it pleases for |
each class and it can pay what con- !
missions it pleases to agents or it
can operate without agents. But when
it does business through agents in
South Carolina it should pay them the
and should treat those
agents and the persons whom those
agents insure of the same class identi-
cally alike.
The bill will not interfere with the
trade mutual insurance companies
which do not have agents. 1t will 4
not interfere with citizens who place
their insurance beyond the borders OF
the State It's sole effect will be to
bring thousands of dollars to South
Carolina which now go elsewhere and
provide for equitable treatment Of the
agents as we'll as the insured.
F. H. McMaster,
Insurance Commissioner.
RLb-in FRAFRAFRAFRAOL 4
Avoiding Dangers