Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-09
INSURANCE AGENTS.
LAW TO Be SOUGHT
Company Executives and
Their Representatives viii
Plan Legislative Program.
BY ROLLIN M. CLARK.

Conflicting viewpoints on three major
problems arising out Of the relation
ship between fire insurance companies
and their agents are likely to be recon.
ciled in the near future as a result Of
conferences just held between the two
groups.
Percy H. Goodwin. president OF the
National Association of Insurance
Agents, has announced that both COM
pany executives and agency Representa-
tives are practically in accord on
Joint program which will have for its
objective the enactment of laws to limit
agents licenses to those properly quail
fed, to limit the number O: agents
who may represent single company in
any community and to forfeit an agents
license If he fails to pay the balances
he owes to his companies within spe-
cited time limit.
Qualifications Question.
The question Of agents qualifications
has long been bone Of contention be-
tween most company executives and
agents. 1t has been the egency group
which has sponsored legislation now
effective in a number of States to re-
quire applicants for agents licenses to
pass examinations as a proof of their
competency to handle their clients in
surance affairs. This has been done as
a matter of self-protection to prevent
part-time and side-line gents from
coming into competition with men who
devote their entire time to the i1sur&
ance business.
Many company officers, on the other
hand, have commended that since the
contractual relationship between COM
panies and their agents is that ordi-
narily existing between principal and
agent, the company is responsible for
its agents acts and that alone is sum
Gent protection to the public. Mr..
Goodwin states that this viewpoint has
chaned, and today many company
officers who were formerly opposed to
any kind of a qualification law are
either in favor of such legislation or at
least will not oppose It,
Limitation of agency representation
Is another matter on which there has
been little agreement in the past.
Oregon has law which requires a
company to pay a license fee OF $500
for each agent 1t appoints In the larger
cities OF the State in excess of two and
in others in excess of one. The con-
Stitut!onaiity of this law is now before
the Supreme Court Of the United States
loT final determination. Should the law
be upheld. 1t is likely that similar legis-
lat-on will be recommended to other
States.
Agents Balances.
The settlement Of agents balances
has become an acute problem during
the present depression. Agents are
loath to cancel policies on which credit
has been extended, especially II their
companies are not pressing them in
turn for payment. But it has been
found that if agents cancel business
that is not paid for on a given date.
practically all Of it is reinstated because
the insured does not want to be without
insurance protection.
To overcome this evil the agents have
agreed to indorse legislation which will
make it mandatory upon every insurance
company. other than life. 10 report to
the State insurance commissioners the
| names of any agents or brokers who are
delinquent on their balances after q
certain period of time. An errins agent
would then be given 10 days to settle
with the company upon penalty Of los
ing his license for a period Of six
months
fcopyright. 1897