Evening star., 1932-12-15
INSURANCE GROUPS
ASK AMENDMENTS
| TO NEW PROPOSAL
Nearly 40 Changes in House
Bill Sought at Commit.
tee Hearings.
Meeting IS ADJOURNED
WITHOUT AGREEMENT
Efficiency Bureau Supports Meas.
ure on Ground Existing Regu-
lation Is Out Of Date.

Nearly. 40 amendments to the pro-
posed District insurance code were Of
fered by representatives Of national in
surance groups today when hearings on
the proposed new law were begun by q
special subcommittee Of the House Dis
trict Committee.
The hearing developed wide differ
ences OF opinion among the insurance
companies and associations regarding
the proposed District law, which would
govern all classes Of insurance business.
The meeting was adjourned to await
the call OF the subcommittee chairman,
Representative Harlan Of Ohio. with the
understanding that representatives OF
the various types Of insurance COM
panies would meet in an effort to iron
out their differences and submit list
Of amendments which will as nearly as
possible represent the ideas Of all in
surance interests.
An opening statement In support Of
the proposed code was made by John
D. Payne of the Bureau Of Efficiency.
who assisted in drafting the proposed
law at the request Of the District Com
missioners.
Law Out Of Date.
1T is generally admitted that there
is need for additional law governing in
surance operations in the District Of
Columbia" Mr.. Payne said. There
has been very little change in the law
during the past 80 years. 1t is out of
date. The insurance business has
progressed in the past three decades,
and it is high time the law was amend
ed to meet changed conditions.
In only one respect Is the District
code capable of handling modern In
surance practice, Mr.. Payne said. This
exception is the marine insurance law,
enacted q few years ago by Congress.
This law, however, is Of only minor ap-
plication. he said. since marine msur-
ance business in the District Is prac-
tically negligible.
There is very little legislation AFFECT
ing insurance except for the marine
code" MIR. Payne explained. Life IN.
ssrance companies are not required
to maintain a reserve in the District
OF Columbia. That is regarded as a
very serious defect in the law. The
District. of Columbia stands almost
insurance regulation"
Mr.. Payne admitted the pending bill
would not provide model insurance
code for the Capital. but that 1t would
represent a vast improvement. The
Bureau of Efficiency. he declared. Is in
favor of the proposed bill as it stands.
Amendments Proposed.
Serious objection to the bill was
voiced by Clepham Murray. jr., OF the
Maryland Casualty Co., who said cas-
ualty companies as a whole are bit
terly opposed to this code In its pres
ent form" He recommended complete
redrafting of the code. declaring that
as now drawn the bill is inadequate
and contains many features which are
harmful to the insurance business. He
asked that he be given time to object
to many items in the bill and to offer
a long series Of amendments on behalf
of the casualty interests.
Representatives of various life inSur-
ance groups are also offered number
of amendments which they said would
make the bill acceptable to their COM
panies Few of these amendments would
change the bill materially as 1t affects
general insurance business. Several OF
the most important amendments dealt
with definitions relating to investments
and taxation.
Among the witnesses appearing today
were Edward s. Brashears, attorney for
the Insurance Club, representing q
number Of insurance agencies in the
District; c. w. Glover Of the Amer
ican Mutual Co., Chicago; S. Hazen
Bond, attorney for the American Surety
Co.: Arthur Won Thaden of the United
States Chamber of Commerce, Hickman
Yates of the Reciprocal Association
A. c. Charles, attorney for the Amer
ican Institute of Marine Underwriters;
Charles T. Taylor, Metropolitan Life
Insurance Of New York; H. S. Weaver
of New York, Association Of Life In
surance Presidents, and Judge Jacob
Moses Of the Sun Life Insurance Co. OF
America Baltimore