MUTUAL LIFE INSURANCE COMPANIES.
Mr. Shively's bill [H. R. 293] concerning Mutual Life Insurance Companies was read the third time [The bill provides, first, that all Insurance Companies doing business on the assessment plan shall issue a bond payable to the State of Indiana for the faithful performance of their contract with their policy-holders. It makes it a felony for any Insurance Company doing business in this State to take out a policy on the life of an infirm, aged or crippled person. It also compels all such Companies doing business in this State to make a report on or before the 31st day of August of each year to the Auditor of State, giving a detailed account of its business. And a failure to do so will work a forfeiture of its charter.]
Mr. SCHLOSS said Building and Loan Associations are in existence all over the State for the purpose of mechanics and laboring men to acquire homes by monthly payments into the Society of $15 per month each month. Two shares are drawn for, $500 each, and such shares are given to such members as are applying for them. They will have to buy lots or build houses for such money and give real estate security. In this way poor people will get homes. This bill will do away with taxing the shares, but all money drawn is put into property, and such property is taxed according to law.
Mr. SHIVELY believed that all the members would agree with him that some legislation was necessary upon this subject of insurance. If there has been more complaint about one than another it has been about this matter of insurance, and the matter of doing business for the last few years. The bill was drawn up by the Insurance Committee and it comes here recommended by that Committee.
Mr. MELLETT agreed with the gentleman from Wabash [Mr. Shively] when he says that there is demand for protection against fraudulent Insurance Associations, and if this bill provided such protection he would heartily indorse it. He called upon the members to examine it can fully before they indorsed it to see whether or not it does provide this protection. This bill seems to be entirely different from the one offered by the gentleman from Wabash at the beginning of the session. He did not believe this bill would give satisfaction to the people of the State. In the first place it, confers too much power upon the Auditor of State. So far as that is concerned, you might strike out all but he one section and leave the whole matter with the Auditor of Stale. He also e is to say whether or not a Company shall do business in this State. The bill provides that any ten members of any corporation may upon demand request the Auditor to make an investigation of the affairs of such Association. Now, if ten men are sufficient to require an investigation, why not say that one man may demand an investigation? Under the provisions of this bill no man is allowed to renew his Insurance, it matters not how long he has been injured in the Company, or how prompt he map have been in his payments, though it has relapsed, because of failure to pay an annuity for a single day or even an hour, for that matter. The previsions of this bill make it a felony for that, man or any of his friends, to renew that policy. If this bill becomes a law, so far from protecting the people, so far from giving satisfaction to the people, it will be the means of crushing out every organization of this kind organized in this State, and turning this business over into the hands of foreign Insurance Companies.
Mr. WILLIAMS, of Knox, was satisfied that the reason why the gentleman from Delaware [Mr. Millett] was opposed to the bill was because he did not, understand the provisions of the bill. There is a demand from every part of the State that the "Death Rattle" Insurance Companies should be cut off. Representatives of the leading and solvent Insurance Companies are here in the interest of this bill. The only objection they have against this bill is that it discriminates against foreign Companies in favor of Companies in this State. The objection is that this bill gives the Auditor of States too much power. This objection comes from these "Death Rattle" Companies that shrink from an investigation. In answer to an objection made against the bill that it did not require a foreign Company to give resident security on their bonds, he did not think it would be just to require them to do so, for the reason that it might be difficult for them to do so, even though they are good, solvent Companies. This bill simply provides that Companies doing business on the assessment plan shall not issue endowment certificates. These Companies can not do a fair business and issue endowment certificates.
Mr. HEFFREN bought the matter was fully discussed, and therefore moved the previous question, which was seconded by the House.
The bill passed the House by yeas, 67; nays, 21.
