The principle, which would free these from State supervision, on account of the expense incident to supervision, is just as applicable to old-line Mutual companies, whose profits or savings belong exclusively to the policy holders and not to the managers of these companies. There is a provision in our laws requiring assessment companies to deposit a copy of application and certificate with the Department. This requirement should be extended to all Life companies particularly the old-line companies, which are frequently producing new forms of policies, making it obligatory upon them to at once forward to the Department a copy of any new form issued in the State, and this should be required under penalty. I recommend changes in our Insurance Law, 1883, providing that no company doing business in this State, and no officer or agent of any such company, shall, in any public advertisement, card or circular, include in any statement of assets, any item of value of a class or character not admitted by the Superintendent of Insurance in the annual reports of said companies. And every such advertisement, card or circular, containing a statement of assets, shall, in all cases, contain also a full statement of all the liabilities of said company, including the reinsurance reserve, which in no case shall be less than fifty per cent on the gross premiums received on all unexpired risks, and providing that any violation of this provislon shall render the company liable to have its license revoked. I recommend that no assessment insurance company be admitted to do business in this State until a sufficient deposit has been made with the Treasurer of this State or with the duly authorized officer of some other state for the benefit and security of all the company's policy holders and creditors in the United States. The Treasurer and his suretics should be made responsible by law for the safe keeping of all deposits. The present law is inadequate in this respect and companies desiring to deposit securities in this state do not feel that they are afforded the security that the magnitude of their deposit requires. As a result no company has deposited its securities in this State, although several have been desirous of so doing. I also recommend that there be passed a law prohibiting the writing of policies of insurance on property in this State by companies not authorized to do business therein except in cases. where all the insurance desired cannot be secured in companies authorized to do business in this State. In such cases additional insurance may be written by outside companies, provided that the insurant shall report to the Superintendent of Insurance at the time of the writing of the policies, the amount of such insurance and the premiums paid therefor and pay a tax of three per cent. on the amount of premium; and providing that such policies shall be void unless the provisions above set forth are complied with. The receipts and expenses of the Department for the past four years have been as follows: The law passed by the Tenth General Assembly increasing the rate of taxation against companies doing business in this State has resulted in a large increase in the receipts of the office. We estimate that there will be fully $100,000.00 surplus during the two years of our administration to be transferred to the general revenue fund of the State. Reference is made to the last page of this report for a statement of receipts and expenditures of the Department for the past. year. In conclusion, I desire to call attention to the fact that the duties of the Auditor's office have been of such an exacting character and have so fully occupied my time, that the work of this Department has practically all been done by the Deputy Superintendent, Mr. N. S. Walpole, and his assistants, under whom it has reached its present state of efficiency. All of which is respectfully submitted, C. C. PARKS, Auditor of State, Superintendent Ex-Officio FIRE AND FIRE AND MARINE INSURANCE COMPANIES ABSTRACTS COMPILED FROM THE GENERAL STATEMENTS OF THE FIRE DO BUSINESS IN THE STATE OF COLORADO, SHOWING 1895 |