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Show MR. DONE'S SPEECH. j Willard Done, acting insuranco commissioner, com-missioner, said in part: Tho future has much In store, as we havo a few companies as well as tho representatives of those companies that are not as yet members of tho association, associa-tion, nnd it will be our aim during tho year of 1910 to gather within tho fold nil of those that aro not members of the association. In its personnel. In its effect on tho profession of Insurance, in its influence, past and prospective, on legislation and on the public sentiment that makes legislation legis-lation effective, nnd in Its encouragement nnd support of tho insurance department In Its general policy, tho Utah association associa-tion stands without a superior among organizations or-ganizations local or nntlonal. Hut for tills association. It Is likely that there would not yet be an Insurance department depart-ment in Utah, and it is likely that but for it, the work of Insurance supervision In tho stnto would still bo as unsatisfactory unsatisfac-tory as It must necessarily bo without a department. 1 recall with great pride and pleasure tho fact that whon I was engaged In the profcKsion of Insuranco I assisted In my feeblu way In tho organization of thin association and In tho direction of ua policies. I look back upon my membership member-ship In tho association as ono of the privileges and honors of my life. Tho Utnh Insuranco department entered- upon Its nctlvo work on April s. 1000. Previous to that tlmo tho won: of supervising Insuranco In tho ctato was In tho hands of tho secretary of state. Tho actual work under Hon. James a-Hammond, a-Hammond, nnd later under C. S. Tlngoy. wjib performed by a deputy In tho office. Tho deputy In charge of the work under the secretary last named was wisely selected se-lected by the governor to be the llrst insurance commissioner of tho state or Utah. I extend greeting to this body from George li. Squires, now absent In California, in the hope of regaining his health. Alms of Department. Tho commissioner took up the work of Insurance supervision where It was left oft" by tho secretary of state, with the added force and efficiency made possible by a specific law and the oxlstoncc of a specific department, with tho executive head. From the first tho aim of the department was twofold. Ono purposo was to assist in putting a stop lo irregular irreg-ular and corrupt practices on tho part of companies and agents by the working up of a strong public sentiment ngnlnst such practices and tho enforcement of tho law covering them. Tho other aim was moro positive, to glvo actual aid and protection protec-tion to companies, agonts and policyholders policyhold-ers alike; to make and keep Insuranco tho great and beneficent thing its name and nature indicate: to conserve the safety of tho thousands of persons and the millions mil-lions of property Insured; to give active encouragement and support to every measure calculated to advance tho business busi-ness and benefit, all Interested in It- In pursuance of the first of these objects, ob-jects, the department has waged and will continue to wage a relentless war on ovlls that sometimes creep Into the Insurance In-surance business. Chief of these may bo named tho throo related plagues of Insurance, In-surance, misrepresenting, robatlng and "twisting." I think I can say with authority au-thority that the efforts of the departmont will not cease until these practices are driven from tho state, and those guilty of them from the insuiranco business. To paraphrase tho words of the groat American. Abraham Lincoln, the soil of Utah must be mado too hot for tho foot of any man guilty of any of these offenses. of-fenses. Liko a Vampiro. Misrepresentation Is tho forked-tonguod reptile, gliding insidiously Into tho good graces of Ida victim, his mouth uttering words that "koop the promise to tho ear and break It to tho hope." The "twister" Is the vampiro that soothes his prey into the slumber of false security secur-ity while sucking his financial life-blood. Speaking specifically of "twisting," so far as I am concerned, lapsing a vnluo-bearlng vnluo-bearlng policy in a level premium company com-pany and rewriting it in another such company, or In an assessment association, associa-tion, either, will bo regarded as "twisting," "twist-ing," and be reprobated by this department. depart-ment. Nor will tho spoclous plea avail that "twisting" Is not designated by that name in the law. The Intent of the law has been Interpreted by this and other departments, and thai interpretation will be rigidly followed. The second object sought by tho department de-partment Is of vital Importance. The law Intends that no company not of unimpeachable un-impeachable character and standing shall operate In Utah. Tho test is made so thorough that any company meeting the prescribed requirements Is without question ques-tion worthy of tho confidence and support sup-port of the candidate for Insurance. The weaker and less satisfactory of the companies, com-panies, including all that could not or would not come up lo the very stringent requirements of the Utah law (the most exacting, perhaps. In any stato), havo been asked to withdraw. During its short existence, tho department depart-ment has been commondably active In the examination of Insuranco companies. The companies with home offices In Utah have been examined during the year 1009, as also ono with its homo office of-fice In a neighboring state. Such examinations exam-inations will be repeated as often as the Interests of the Insured demand, while unnecessary expense and annoyance to .the companies aro carefully avoided. The rulings of the commissioner in respect re-spect to Insuranco practices havo been broad and- yet as strict as occasion do-manded. do-manded. And I wish here to express tho thanks of the departmont to tho attorney-general of the state, A. R. Barnes, and his assistant, George C. Buckle, for tho Invaluablo assistance they have rendered ren-dered in tho settlement of questions regarding re-garding departmental procedure. I also tako this occasion lo thank his excellency. excel-lency. Governor Spry, and C. S. Tlngey, secretary of stato, for their active Interest Inter-est and splendid assistance and encouragement encour-agement lo the department In Its work. The aim of tho commissioner in his rulings rul-ings has been to treat all companies and associations as nearly alike as possible For example, when the law demanded that the writing of special contracts ceoso, tho prohibition was extended to assessment associations and fraternal orders, or-ders, as well ns to old line companies. When the section became operative declaring de-claring suicide not a defense after tho first year of the policy. It was mado to apply to level premium and assessment companies alike. I do not know if thoro is another stale in tho Union where both these classes of insurance companies Incorporate In-corporate in their contracts of life Insurance Insur-ance a direct statement to the effect that suicide shall not bo used as a ground for disputing any claim thereunder, after the first year of the contract. I am pleased to say. however, that such is the caso in Utah. The department Is attempting to stop, or to regulate under the provisions of the law, the writing of .unauthorized business, busi-ness, especially fire Insurance, and tho placing of Insuranco through unauthorized' unauthor-ized' agents.' Inquiry Promptly Answered. Encouragement has been given to the people of the stnto to como to the department de-partment for information on Insuranco matters and statement of grievances. All Inquiries havo been promptly answered, and In furtherance of Insuranco education, educa-tion, statements havo been issued by tho commissioner at Intervals, and published in the dally papers, which havo generously gener-ously and courteously opened tholr columns col-umns for this purpose. These bulletins are on questions of Interest to the insuring insur-ing public, and aro Issued as often as occasion warranjs. In conclusion, a few words as to needed need-ed changes In tho law. Only such amendments should bo mado as aro proved necessary by experience. These changes, I think, should be In the direction direc-tion of making tho department still more efficiont. by giving tho commissioner more help in the office and granting explicit ex-plicit powers where he may now bo under un-der the necessity of exercising discretionary discre-tionary power. I can name only a few of these changes. As to additional help: A great deal of traveling In the line of doing the necessary neces-sary work of Investigating complaints and tho standing of companies and the work of agents, makes It necessary that more Jiolp bo allowed. Then, the Illness and consequent disability of the commissioner commis-sioner should be provided for by the creation cre-ation of the office of deputy commissioner. commission-er. It seems to mo that no serious question ques-tion could be raised as to tho advisability advisa-bility of allowing thl3 Bmall additional son that U will collect nnd turn over to tho stato treasurer each year some $ 10,000 more than tho cost of conducting the department. Indeed, one llfo Insurance company will pay in foes nnd taxes this year tho entire cost of the department, including the salary of the commissioner. While I think that no ono doubts that discretionary powers may rightly be as-KumoTl as-KumoTl and exercised by the commissioner, commission-er, yet it goes without saying that It would be bettor If they were explicitly stated. For example, certain acts are made criminal offenses by the law; and I am of opinion that It should be mado the duty of tho commissioner to revoke the license of tho offending company or agent In every' case where he has undisputed un-disputed evidence of the ofronso. The law should be strengthened In Its supervisory super-visory power over nascssmont and fraternal fra-ternal associations. Provision should bo mado for the publication pub-lication of bulletins and other pamphlets by the department, and exchange of thoso with tho depnrtmonts of othor stales. Provision should also bo made for tho preparation and publication of a aomowhnt cxtenslvo report of the work of tho department, Including such information infor-mation and comment regarding companies compa-nies as would be found necessary to keep tho Insuring public Informed. Fuller provision pro-vision should be made for tho examination examina-tion of companies and the publication of the results of such examinations. |