The Bottineau courant. (Bottineau, Bottineau County, N.D.) 1895-1929, 1918-03-21
oEate .. the fact that their business would
\ 49, StOr q cd over three states, and

plan is feasible if backed by the state
or government, and note with satis-
faction that the idea has been discus
sed and recommended by farmers con-
ventions and in press notices lately:
AS to My Critics.
Having learned that my departure
has been roundly scored by some and
notably the Minot Messenger, for per-
mitting this kind of insurance, and
especially for admitting the Bankers
Insurance Co., to the state, I wish to
say word in explanation: The po-
sition is taken by many, that the Com
missioner of Insurance has vested in
him the power to admit or bar, at
will, any insurance company, whenev-
er he may choose, to do so. This is
not the case, and would indeed be a
dangerous autocracy. The insurance
laws prescribe the requirements un-
der which a foreign stock insurance
company can be admitted, and when
such company files with the insurance
department, a certificate of compli-
ance, issued by the state where it is
organized, the Commissioner can no
more bar that concern from the
state, than can states attorney keep
out the peddler, who pays his license,
or one who will try to keep an ardent
lover from marrying, when he has a
regular, lawful license in his pocket,
Permit me to quote from a statement
by Attorney General LANCER, in an
swer to inquiring policy holders on
this very question:
"This situation furnishes most
striking example of the defects in our
present insurance laws. Under Sec
tions 4913 and 1853, 1913 Compiled
laws, no discresion is given the North
Dakota Insurance Commissioner as to
admitting a foreign stock insurance
company to do business in this state
providing it files the proper papers
and has paid up and unimpaired
capital of at least 100000 in the
State where it is chartered. The re-
suit is that insurance companies with
only 100000 assets can come into our
state and all those who do business
with them here must run the risk
that unexpected losses will wipe out
such companies and prevent the pay
ment Of losses
Now, someone will say: "Very
well! But is it not true that the
Bankers Insurance Company never
had the 100000 required by law"
and also that an examination should
have been made to ascertain the fact :?
Here is the rub. Maybe we should,
and maybe we should not. Together
with other data and certificates per-
tanning to the affairs of this company
at the time they applied for adnis-
sion last Spring, Commissioner Keat-
ing of Montana, (now deceased) SUBJ
mitted sworn statement, that the
Bankers Insurance Co., had been duly
examined on March 7th, 1917 and
exhibited to him that they had in cash
asserts over 100000, in compliance
with law.
On the strength Of the proper docu-
ments from the home department, we
admitted this concern, according to
custom of my predecessors in this
state-and, which is also customary
in other states, I believe. Further
more, we have no appropriation to
take care of the extra expense of an
examiner or actuary, which such in
competency would necessitate AS to
the charge made, that, for the incom-
potency of the Farmer Commissioner,
this would never have happened, I
have no comment to make, except that
I have had some personal experience
with defaulting insurance companies
myself, and know of several such fail
ures under former administrations,
and they were not farmers admins
trations either! Such assertions are
Of course made by enemies of the
League, with the hopes of discredit-
ing same.
With reference to the National Un-
ion Fire ms. Co., will say in all fair
ness, that, while they may have been
deserving of much criticism for the
manner in which they conducted their
adjustment Of losses, and for refus-
ing to pay claims in full, there are,
admittedly, many instances, where
their position was justified.
Whatever else may be said, the fact
remains, that our farmers will have
received, perhaps, several hundred
thousand dollars, by reason Of this
insurance, which otherwise would not
have accrued. Pardon the introduc-
tion of statement taken from a let
ter written by the manager of this
company, in response to my inquiry
as to the prospects. This was dur
ing the first half Of August. The ex-
cerpt refers to the clause in their
crop policy which stipulates a fixed
price to govern in settling of losses,
and is as follows:
present conditions are, Mr. Olsness,
that the National Union is going to
sustain a very serious loss. At least
three-fourths Of such net loss being
the result Of your official action in
compelling us to issue policy in ac-
cordance with your views instead Of