New-York tribune., 1921-12-20
State Risk Men
Plan Curb ON
/ Alien Firm 8
rauamittee Confers With
s.oddard in Effort to
! End Alleged Unfair Cora
! petition from Europe
Practices Held Illegal
Underwriters Charge Tha,
Brokers Have No R;r',t to
/ Deal with Unlicensed Firm

Fiction Of twenty years standing
.~,no American insurance under
ling and brokerage houses repre-
..nt,ur foreign Insurance companies
,nsssred yesterday 70 be o. tte way 70
settlement. An Informal committee,
..nresentinr ire authorized marine,
~ casualty. burglary and surety in
.nrspee companies. licensed insurance
.r,nss ard licensed insurance brokers,
~.t in the afternoon at the Office of
rrsnc;s StcddarG jr., State Superin-
,.ndsnt Of Insurance, 1s5 Broadway,
and effected preliminary organization
:. hiring about & peaceful solution o.
the issues.
Tie brokerage houses always have
insisted thss they have a legal and
no-al right to co as much business
with foreign und writing companies,
mt licensed IN New York State, as they
,ss handle. The practice. running into
hundreds Of thousands Of dollars s
r.sr. has been the subject Of repeated
complaints Oh the part Of American
Underwriters FOR The foreign business,
~o consolidated IS 20 be carried on
economically and at rates attractive to
bavers CT insurance - this country,
hss made deco .nroads into TIE profits
-sat ro.rht Otherwise accrue 10 The
America CON p.n.cs.
.-I~r-, fs,-rfe;ra = Tifa~ai
The underwriters have contended
that the practice is ilesll and cite
those actions o. the Penal Law aad u
t5e state Insurance law which pre-
k;bst specifically New York insurance
brokers' from dealing with concerns IN
licensed in his state. OF these Tn
licensed concerns, most OF which are
London companies, is Lloyd's, the larg
est insurance con- pany in the world.
Unlike the British law. which per-
nits an insurance company to com
b;ne all its business, laws CT all states
IN America, With the exception of Con
necticut. prohibit such anal lgamation.
The American concerns, therefore, are
forced . charge higher rates, and the
brokers' are orrespondingly forced to
handle the business Of the foreign
concerns.
The meeting yesterday was aa-
journed TO afford tbs joint committee
an opportunity OF confe erring with their
sspective associates 20 develop u plan
- BE submitted to Superintendent
Stod6ard at the next meeting OF the
eammittae, whica viii be held the first
week in January. The session was de-
void Of any of the friction that has
characterized the differences FOR many
years, Mr. Stoddard said.
Unfair Practices Alleged
"The primary purpose of the organ
isation of this committee explained
Ar. stoddard, lis to make suggestion
IN accordance with the public interest
regarding the policy to be followed by
tie state in connection with the busi-
ress being transacted by London
Lloyd's and other unauthorized insnr-
.ance carriers. There have 5een many
complaints made 80 the insurance de.
partment By companies and brokers
who have suffered by reason of the al
legged unfair compe eition of -hese un-
authorized insurers and it is hoped
that the plans 20 be submitted will def
ntely indicate how the abuses may be
aoated.
1T is the aim OF the Superintendent:
Of Insurance to have the members o1
the committee represent all insura- ct
interests that are affected by this oues,
ton, but he nevertheless invites al