Show Drive for Back Premiums Urged on Insurance Board Action by the state insurance commission to collect delinquent industrial premiums was urged by auditors in a report released Thursday The audit covered the period from July 1 1932 to June 30 1934 It t was prepared by Gus Friendly and Max R. R Christensen deputies and nd approved by Julius C. C Anderson state auditor I In general the fund Is 15 in fairly good cod shape except that the surplus on m on hand amounts to less than half halt of that required by law the auditors i said aid This situation was held to be due largely to the increasing amount of outstanding delinquent pren premiums on compulsory industrial insurance On June une 30 1934 1 a total of ot in premiums was vas outstanding compared with at the same time in 1932 A rigid collection policy was rec- rec We found that the amount of outstanding outstanding out- out standing landing premiums has increased considerably over the last audit pe- pe nod iod It is our opinion that a stricter collective policy should be adhered to o and that the fund should make cancellation more more e effective Too much leniency perhaps is the reason rea- rea rca rca- son on for the increase in m outstanding ng premiums t KV S S T There re are several delinquencies amon among the larger companies We call especial attention to one of these which shows a delinquency of at t the time cancellation was ordered but ut on on recommendation of f the th commission com corn mission this this' poli policy y was was' reinstated without the payment of ot the amount due and at the period of ot this audit is still unpaid We see no reason for reinstatement reinstatement reinstate reinstate- ment of ot this or any other policy af after after af- af f- f Iter ter cancellation is ordered until back premiums are paid It appears that the coal industry shows the greatest delinquency A more r rigid gid policy should be ad adopted making collection collection col col- lection more effective with less chance for loss of premiums Referring to reserve and surplus the report pointed out that 10 per percent percent percent cent of ot the mon money y paid into the state insurance fund should be sc set aside for creation of ot a surplus until the surplus reaches and thereafter that 5 per cent should be paid into the fund until in the judgment judg judg- meat ment of 01 the commission the surplus shall be bc sufficiently itly large to cover the catastrophe hazard and other unanticipated unanticipated un un- un anticipated losses The balance that the surplus st stands at only The surplus as shown the report said is in in- our ur opinion insufficient and we recommend that the commission commis sion exercise its authority in m advancing advancing ing tog its iu rates to such an extent that a surplus shall be built up to the law requirement |