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Show CLEAN SWEEP DH IIMJCf LAW Both Branches of New York Legislature Have Passed Stringent, Measure. PROTECTION OF POLICYHOLDERS POLICY-HOLDERS IS OBJECT All Investments in Stocks by Companies Will Be Prohibited. NEW YORK. March 30. The Joint legislative committee at 1:50 this morning finished their work upon tho legislation resulting from the insurance Investigation Investiga-tion and the bills as finally recommended by the upeclal Investigating committee will be reported in both Houses today and sent down for printing. Numerous Changes. At the close of the meeting Senator Armstrong made a statement substan tlally as follow.x: "Tho bills relative to lobbying, political politi-cal contributions by corporations, perjury, falsification of entries, rebates and .he acquisition of real property by insurance companies stand substantially unchanged. Amending" General Law. "The bills establishing standard forms of policies and relative to co-operative and assessment companies have been consolidated con-solidated with the general bill amending the Insurance law "The most Important amendments arc those relating to Investments of insurance insur-ance companies and expense limitation. Investments In stocks and In collateral trust bonds aro mill prohibited, but the companies are permitted to retain collateral collat-eral trust bonds now in hand. (These aro sold to amount In between $75,000,000 and J100.000.000j. They arc still required to dispose of their stock holdings as In the original bill. Expenses Restricted. As for section &S. to which the agents so earnestly objected, a company's ex-I ex-I enso for first year's business must not e.vcced: First, the commission to agents; second, salaries paid exclusively for obtaining new business; third, medical and Inspection fees; fourth, advances to agents, which shall not exceed loadings and margins originally allowed. Allowances Made. The bill origlnnlly provided that expenses ex-penses allowed must Include every expense. ex-pense. The allowance now Is about 50 per cent to new business to agents on ordinary life. Renewal allowances are extended to nine renewals at 7t per cent, with 2'A per cent collections few after that, "flic compuny is given the privilege to commute renewals and pay In thrco or more years, but i ot more than two-llfths on uny year. Affects Outside Concerns. Generally speaking, the requirements established es-tablished urc made applicable to Nov.' York State companies only, except that the restrictions on expense of new business busi-ness are enforced upon otitsidc companies compa-nies by a provision that any company not doing Its business within these limitations limi-tations for domestic companies shnll not be permitted to do business within tfils State. As to the contingency reserve, it Is provided that after the total of assets reaches $75,000,000 a company may maintain main-tain a G per cent reserve with the proviso pro-viso that the Superintendent of Insurance may annually authorteo a company to carry n largo reserve if deemed necessary neces-sary to meet special demands Otherwise, In all' other essentials, the bill remains as originally introduced. Tho committee believes It lias met all reasonable reason-able objections and that the concessions made will secure the speedy passage of the bills without important opposition |