The New York herald., 1922-06-12
STATE INSURANCE
POWERS WIDENED
superintendent Now Has Pow
er to Interfere When
Rates Are Unfair.

r. r. Stoddard, Jr., State Super
L,intendent Of Insurance, made public
yesterday digest of the recent amend
ments to the State insurance law, which,
largely as an outcome of the Lockwood
inquiry permit the mutual insurance
companies to Join rating organizations.
prevent discrimination and empower the
State Superintendent, subject to review
by the courts, to interfere when he finds
rate unjust or unfair or practice
discriminatory
The statement refers specifically to
amendments to section 141 of the in
surance Law and to the two new sections
141-a md 141-b. The new provisions
apply to accident and health insurance
issued by life insurance casualty COM
panies, to credit indemnity insurance
issued by casualty companies under
section 20, TO fire insurance issued by
certain kinds of companies, to automo-
bile and aircraft and sprinkler leakage
insurance and to nearly all other forms
of insurance issued by fire and casualty
companies.
Attention is called to the fact that
the law as now in force requires rating
organizations to file. or supply on de-
mard. data regarding organization and
schedules of rates that no rating organ
ization shall fix rate on condition
that all or part of certain insurance
shall be written at the rate; that rates
shall not be fixed that are discrimin-
atory as between risks of the same
character; that such organizations shall
not charge brokers a licensing fee or
discriminate against brokers and that
rating organizations schedules must be
available to all interested persons.
There is a provision also that the super
intendent, when a rate appears to him
unfair, may remove the discrimination,
but not by the raising of the rates. His
findings are renewable by the courts.
The amendments make substantially
the same provisions as to companies,
agents. officers and employees of the
companies. and. In addition. decree that
there shall be no deviation from the
established rates and rules. Brokers are
required to comply with the rules OF the
companies for which they write. Rat
ing organizations must admit to men,
bcrship any company authorized TO do
business in this State. Companies are
not required to become members OF rat
ing organizations, but they must not
become members for the purpose of COM
plying only with a part of the rules and
rates of these organizations, and each
company must file with It's rating organ
ization. yearly, schedule OF premium
writings and losses for the previous
year.
No company Is permitted to be mem
Der of more than one rating organiza-
ton OF to adopt the rates of more than
one such organization, nor may any COM
pany "be a member or subscriber OF any
rating organization subject to the pro-
visions of the law, nor financilly aid
ing such rating organization IL such rat
irg oroanization fails to comply with
this law"
Violation of the law. the statement
concludes, is a misdemeanor punishable
by one years Imprisonment, $500 fine
or both fine and Imprisonment. and any
person. association. corporation or
organization which is guilty Of willful
violation, must. In addition. forfeit not
less than s25 nor more than $1,000 for
each offense.