Evening capital news. (Boise, Idaho) 1901-1927, 1917-01-03

the portion Of our state popularity
amount of life insurance is written by
agents residing in the state of WASH
ington, but by reason of the resident
agents law prevailing in that state.
agents residing in Idaho are not per-
mitted to cross the boundary into
Washington for the purpose OF offer
ing their contracts to the people OF
that state The same condition, of
course, prevails on the eastern bound
airy of our state and we will say that,
aside from the merits the law itself
would possess, 1t would seem hardly
fair that such conditions as now pre-
vail should be permitted to continue.
We might add here that we have such
law governing fire, accident, casualty
and in fact all other insurance agents.
except the life agent; so it seems to us
that the provisions of our code should
be extended along this line to cover the
life agents as we'll as other insurance
agents.
RESTORE ORIGINAL LAW.
Second: Under section "a, chap
ter 81, Of the session laws of 1913
(Which is known as section 76 Of our
insurance code) 1t was provided that
before a stock company whose char
ter authorized it to transact business
upon both a participating and nom
participating basis, should be permit
ted to transact business in the state Of
Idaho, it was necessary for 1t to elect
one or the other class of insurance 1t
would write in the state of Idaho and
that having so elected. 1t must con-
fine its business in this state to the
class elected. But, the legislature OF
1914-15 saw fit to repeal this provision
We refer especially to section of sem
ate bill 60, which was approved March
s, 1915, which section repealed that
portion of section "a, chapter 81, OF
the session laws of 1913 Ito which we
have above referred) with the follow
ing proviso, to-wit: All joint stock
life insurance companies authorized e
transact business in the state Of Idaho
may be permitted to operate on both G
participating and non participating
basis We would most earnestly re.
commend that that portion of sector
4 2 which contains the proviso above
mentioned be repealed and that thu
original law be restored. so as to re
quire stock companies to elect the elias:
of insurance which they may choose I;
sell in the state of Idaho, and that the,
be required to confine themselves t
the class SO elected.
Our reason for this recommendation
is based upon the opinion that 1t is un
fair to permit a stock company to sci
both classes of insurance in the stat
of Idaho, and at the same time prohibi
mutual companies from doing the sam
, thing. This seems to US to be elias
; legislation in favor Of stock companies
notwithstanding a greater percentag
Of the insurance upon the lives Of tn
people OF the state of Idaho. is carrie
in mutual companies than in stoc
companies.
DIVIDENDS TO POLICY HOLDERS
Besides, we are of the opinion tina
, participating insurance by its very ma
!. ture essentially belongs to mutna
companies. since there are no stoc
holders in a mutual company, to who
! savings from their business may b
: distributed, consequently, It should b
all rules of right and justice be return
ed to the policy holder in the form {
: what is popularity known as dividends
!, Whereas in a stock company such Pre-
?. Ills or Savings, IL any. justly ptioh6
: the stock holders who furnished til
: capital necessary to build and develo
. the company. We are of the furths
: opinion that il stock companies al
. tempt to write both classes OF insul
a ance and especially unless they ses
! regate their participating business fro
. their non participating business, thei
= is bound to be an injustice done to OF
or the other class Of policy holders. {
= we'll as to the stock holders of Il
n company. Upon this point we lie
j reasonably sure that we are expressir
n the opinion OF the leading actuari
!, throughout the country and we ha'
:, also had occasion to discuss this ma
= ter with some very capable life insu
= ance men. all of whom fully agree wi
8 the position we take in this matter.
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