Pueblo chieftain., 1921-02-17
INSURANCE BILL ISP0STP0NED
AFTER WARM COMMITTEE SESSION

Major ]. Foster Symcs, OF Denver.
and w. X. Choru, former insurance
commissioner of Missouri, argued Tor
reciprocal companies, while Charlcs
Fertig, deputy insurance commissioner
of Colorado, favored the enactment OF
the law under discussion, which law
Fertig claimed was necessary to con-
troll reciprocal companies and which
law the others claimed was intended 70
put them out of business. The cro~d
was with the reciprocal side OF the
proposition. In addition to Mr.. Symes
and Mr.. Chorp several men represent
ing such concerns as the department
stores of Denver and Pueblo, the man
ufacturing plants of the entire state
and tho wholesale houses OF the state
gave testimony to the value of rccip-
rocal insurance and frankly stated
that II the bill as proposed becomes
law they will be put out Of business
In so far as their reciprocal insurance
is concerned. Agents representing OLD.
limo insurance companies supported
Mr.. Fertis in his plea for the bill.
Major Syrnes opened the fireworks
by declaring that the proposed law was
drafted by the old-ltno companies, ana
that Mr.. Fertig. the deputy insurance
commissioner, who Is supporting ~
derives an annual commission from
those companies. He declared that MT.
Frrtlg was illegally holding his posi-
ton as deputy Insurance commissioner.
He declared that the present law IN
Colorado has been adopted by twenty
five other states and that not n collar
has ever been lost to reciprocal in
surcr in any of those states, and that
the law is sufficient to protect every
one. He declared that the reciprocal
insurance costs just fifty per cent oil
the old-llne insurance and that the OLD
line companies were trying to secure
the enactment of this bill purely be
cause this competition was hurting
their business He declared that in
1918 and 1919 the old-llne companies
collected in Colorado over eleven and
one half million dollars and paid out
less than four million dollars; that
they made over seven million dollars
clear profit, and that this is too much
profit.
ment that Mr.. Symes had outlined, but
did II more in detail. He declared that
II the law went thru every business
concern in Colorado that wanted to
take out reciprocal insurance would
have to change It's articles OF incorpor-
alton. He declared that there were
provisions in the bill that 1t would be
Impossible for tho reciprocal companies
TO meet.
Mr.. Fertig in supporting the bill
stated that there are large number
OF reciprocal companies that are all
right, but he said that under the pres
cnt Colorado law wildcat companies
could be organized and that the pro-
posed law is for the purpose of pre-
venting the organization of these Wild
cat companies. He maintained that a
contract under reciprocal agreement
is not insurance, but is n reciprocal in
demnity. He maintained that under
the present law the state insurance
commissioner has no control over re-
ciprocal companies and that all he
wants Is the same power over recipro-
cal companies that they have over old
line companies. He claimed his bill
would not put the reciprocal companies
out OF business. He stated he was
willing to agree TO any amendments
that would guarantee that the honest
reciprocal companies would not be put
out OF business.