The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1916-08-31
INSURANCE men
GIVEN WARNING
Commissioners Emory Il. EneIIsh De-
elares Many Concerns With
Permits, May Defraud
Insured.
HAVE NO COME BACK
Cannot, Collect In Courts and Prop
erty Owners Suffer Heavy
Losses on COLLECTIONS,
He says.
HAVE NO COME BACK

Iowa businessmen and property
owners are being imposed upon with
respect to fire insurance coverage,
by self-styled experts, advisors. audi
tors and adjustors of the assured,
many Of whom recommend the use
Of forms not in harmony with the
Iowa laws with the evident object of
directing the placing Of insurance in
unauthorized and often time 1rrespon-
sible insurance companies, according
to Emory H. English, state insurance,
comm issiOner.
when buying insurance with I'M
licensed concerns the property owner
is absolutely at the mercy of the Off
GERS Of such companies In case of loss
and since they do not hesitate to de-
fraud the state Of Iowa by avoiding
the payment of taxes as required by
law to be paid on insurance premiums
collected, it is not unreasonable to
anticipate that such concerns would
not hesitate to take the same advan-
tage of it's policyholders," said Mr..
English.
Penalty for Violation.
while the law does not prohibit
a property owner from securing an
insurance policy in an organization
which is not licensed to transact bust
ness in Iowa, there is penalty. how
ever, for any person doing an act or
thing in selling unauthorized insur-
ance in the state.
"The penalty inflicted by the
! statutes upon the person purchasing
such insurance is drastic in that no
action could be maintained in an Iowa
court for collection Of claims for losses
under contract with any such I'M
authorized company unless 1t could be
shown that within six months follow
ing the date of such contract there
had been paid into the Iowa state
treasury 2h percent of the gross
premiums paid or agreed to be paid
| for such policy; also In case of suit,
| there would be no one legally repre-
senting the unauthorized company in
| the state upon whom service could
be had; also that persons protesting
to represent such unauthorized COM
/ panies cannot enter this state to adj
just losses which might occur under
its policy, nor can this duty be per
formed for such unauthorized >cOm-
pany by the representatives of any
authorized company or an indepen-
dent adjuster.
Cannot Prorate Losses.
| Furthermore, the authorized COM
panies legally operating in the state
are not permitted by law to prorate
any losses except with other valid
! and collectible insurance, any agree-
ment to the contrary notwithstand-
| ing. The failure Of this class of al
legged insurance concerns to pay
losses has brought distress and finan-
cial embarrassment to many citizens
of the state.
Insurance commissioners Of the
various states are cooperating to in
vestigate the practice Of the experts.
who have become disturbing infiu-
ence in many communities.
"At a recent session of the national
convention of insurance commission
ers a committee was appointed to in
vestigate the operations of the audi
tors and adjusters to the end that
| legislation may be formulated and
| recommended for the protection OF
the insuring public"