The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1915-07-19
INSURANCE
BOARD LAW To
Be TESTED
SUIT TO BE FILED BY THOSE IN
TERESTED MEASURE GIVES
CERTAIN POWERS TO STATE
COMPANIES DlsAPPRoVE.

Oklahoma City, Okla, July ia
movement that was started soon af-
ter the new insurance board law went
into effect having as its object the
overthrow of that law, has progressed
to the point where it will soon be in
court in the form of a suit to test the
constitutionality of the act creating
an insurance board and otherwise
changing the law. The suit is being
prepared by two firms of insurance
lawyers in this city. 1t is to be in be-
half of the Insurance Company OF
North America, backed by large
number of underwriters of the state.
The law in question was enacted by
the fifth legislature and, among other
things, it gives to the insurance board
therein created, a great deal of the
power that was vested by the consti-
tuition in the state insurance commits
sioner.
1t also attempts to prevent the writ
ing of insurance wherein the entire
commission is not received by the
agent signing the policy. 1t imposes
2 per cent privilege tax on business
written outside the state and gives the
insurance board great power as to the
licensing of agents and the approval or
rejection of policy forms, making it
impossible for underwriters to adver-
tise as such under certain conditions,
and enforcing the filing face of the
policies to contain most conspicuously
the name of the responsible insurance
company rather than the underwrit-
ing agency, as has sometimes been
the case.
The insurance board as constituted
under the new law consists of the
state insurance commissioner as eX-
officio chairman, the state fire marshal
and a secretary to be a third member
of the board, appointed by the COVER
nor. The personnel of the board is
A. l.. Welch, insurance commissioner,
c. c. Hammonds, fire marshal, and w.
r. Samuel, secretary.
While he has not publicly so de-
cared, it is clear that the attack upon
the law is pleasing to insurance com
missioner Welch. He was shorn of
much of his official importance by the
act and it was passed in an alleged at
tempt to accomplish that very thing.
At the time the bill was pending in
the legislature, Mr.. Welch was under
impeachment charges and his trial in
the senate after adjournment of the
legislature resulted in his complete
vindication.
The interest of the larger insurance
companies in oyerturning the law is in
the fact that it takes a great deal Of
their business management, they al
ltSts away nun lllthl anu ''4 no ~
over to the local agents in this state.
The provision that attempts to Sc
cure to the local agents all the COM
missions allowed will upset the prac-
tice that has been made of placing
large lines of insurance through brok-
ers in some of the central cities. Such
companies have intimated that if the
law shall be upheld, they will find 1t
more profitable to leave the state and
handle the big policies here without
the Intervention of local agencies.
The suit is being prepared and will
probably be filed in a short time, but
the chance Of getting it tried in the
regular course seems to be slight be-
fore the end of the summer, owing to
the vacation period being on for the
courts.