Salt Lake Telegram | 1941-02-28 | Page 2 | Prober Urges Registry of Insurance Firms

Urges Registry Of Insurance Firms Arms WASHINGTON Feb 28 P JJ Compulsory federal registration of life insurance companies doing interstate business was proposed to the monopoly committee ommittee Friday Fri Pd- day by Sumner T T. Pike the se securities securities securities se- se commissions commission's representative tive on the committee He also recommended that such companies be required to submit to federal examination tion Pike asserted that these to together together to- to gether sether with other recommendations offered by himself and Gerhard Gerhard Gerhard Ger Ger- hard A. A Gesell who conducted a study of of life insurance for the monopoly committee would provide provide provide pro pro- vide some slight supervision over certain primarily interstate as aspects aspects aspects' aspects aspects' as- as of life liCe insurance The business already is subject to regulation regulation reg reg- n by the states Not Interference At the same time Pike declared that the federal government should hould not supplant the states nor should it interfere with their regulatory processes We do not recommend or suggest sug- sug gest any form of strict all inclusive inclusive siv sive federal regulations he saidOn said On the contrary the entire purpose purpose purpose pur pur- pose of our proposals is to demonstrate demonstrate demonstrate demon demon- strate that such regulation can be avoided by strengthening the ex exIsting exIsting existing ex- ex state regulatory machin machin- ery ery Pike declared however that if fome some steps are not taken now to plug the gaps where state regulation regulation regulation regula regula- tion cannot do an effective job or where standards may become l unduly relaxed the weaknesses inthe in inthe the existing state regulatory system tem may lead to Its Us eventual de decay decay decay de- de cay and and public clamor will then arise for lor an inclusive all-inclusive federal regulatory system Hits lilts Industrial Type Pike also suggested that the government encourage the gradual gradual gradual grad grad- ual disappearance and eventual elimination of industrial insurance insurance insurance ance through a system of lump sum death benefits under the so social social social so- so cial security system or by providing providing providing pro pro- viding government insurance of a similar type through postal fa fa- fa He described industrial insurance insurance insurance ance as the type sold in small amounts primarily to persons of little means and under which premiums are paid weekly or monthly to collectors who call at atthe atthe atthe the homes of the insured The states Pike contended should consider liberalizing their investment laws to permit life insurance in insurance insurance in- in companies to invest a portion portion portion por por- tion of their funds in common stocks State action also was asked to abolish what Pike termed clandestine clandestine clan clan- clandestine destine conferences conferences' among life insurance companies to fix rates through gentle ge U mens men's agreements