The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1915-04-03
INSURANCE BILL DISCUSSED.
Commissioners McNiastcr Says That IL
Will Bring Money into State.

oN'NAHOi W lSSuldtc the writing OF
certain classes OF insurance and 70
provide for the division Of the COM
missions" having become q matter of
newspaper controversy and my atti-
tudo towards the bill having been
drawn into question. l ask for publica-
ton of this communication.
This bill was drawn and enacted
ut the instance Of the South Carolina
association of local insurance agents.
II was intended to make perfect the
resident fire insurance agents law, APP
plying only 10 fire insurance. passed in
1900 and to extend its provisions to
all other forms OF insurance except
life.
When my attention was called to
the bill by the legislative committees
on banking and insurance 1 applied to
1t the test l try to apply TO all leg
islation; how will 1t affect the inter-
ests of the people Of South Carolina at
large?
/ found the bill. as drawn, would
practically force every company do
ing business in South Carolina to do
business through agents. SO / asked
for IN amendment to correct this. The
amendment vas agreed to and the
bill as enacted applies only to 'any
insurance company doing business
through agents in the State Of South
Carolina"
So amended tho bill If it becomes a
law will bring annually to South Car
ollna some thousands of dollars which
now go to agents in Atlanta, Balti-
more. New York and other insurance
centres. These thousands of dollars
will go, first, to local agents here, and
from them to other people in this
State. instead OF nov 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 n make any
rate It pleases without being affected
by the bill.
II does not regulate the commits
sions paid to agents. Each company
can fix its own scale Of commissions
TO agents, but II does say that II a
company docs business through agents
in South Carolina it must do it's bus
mess through those agents and pay
them the commissions and not do the
business through Its agents In other
States and pay them the commission
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 q definite,
we'll determined meaning in the trade
and in the law books and to all in
formed and exac persons.
Fire insurance companies are for
hidden by the act OF 1904 to make
discrimination In rates between South
C~arolinlans on risks Identical in
character. Life insurance companies
were SO forbidden by the act OF 1903.
Incidentally the present act may
raxsan oil ntho. f.n.x, 40
doing.
II ii has this effect 40 much the
more c~ommendable the bill Tor 1t Is
against equity and fair dealing for
any kind of an insurance company to
treat individuals of the same class
differently. A company can make as
many classes. founded on reason, hat
IL wishes and II can make what rates
II plcases for each class and 1t can
pay what commissions 1t pleases TO
agents or 1t can operate without
agents. But when 1t does business
through agents in South Carolina 1t
should pay them the commission and
should treat those agents and the per-
sons whom those agents insure Of the
same class identically alike.
The bill will not interfere with the
trade mutual insurance companies
which do not have agents. 1t Will
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. III. McMaster,
Insurance Commissioner.
T. non