Rensselaer Semi-Weekly Republican, Volume 41, Number 80, Rensselaer, Jasper County, 25 June 1909 — The State Insurance Rules Will Now Be [ARTICLE]

The State Insurance Rules Will Now Be

Auditor of State Billheimer, who is the head of the insurance department of the state, has issued a new set of regulations governing life insurance policies in Indiana, and among the new regulations there are some.that are a radical departure from the old system. “ "“■pT The ruies reflect the auditor’s interpretation of the insurance laws, and will form the basis for all operations of the insurance department under the laws. Much of the opinion is given over to rules concerning rebating, which is expressly forbidden under an act of the recent session. The auditor’s holding under this law provides as follows: be held to be rebating for any company to .issue a policy after March 1, 1909, on any application made prior to that date, if the whole of the annual premium named in the policy has not been paid; no life insurance company may allow one of its agents a commission or rebate on a risk written on the agent’s life; no form of note shall be taken by an insurance company in settlement of a premium unless the form of note has been filed with and approved by the auditor; it will be considered rebating for a company to accept a note in part payment for any part of premium when the note does not provide for the payment of interest, also if the company accepts in settlement of the note, any sum amounting to less than the principal and interest, also if the company shall discount the note to the maker, or to any one else at a discount greater than a reasonable banking rate; it shall be held to be rebating for a company to accept any note or agreement to pay money which is not an absolute and unconditional liability to pay the amount named in the note or agreement with interest payable annually, also for the company to accept any sum in settlement which is less than the amount of the principal and interest due at the time of settlement; it shall be held to be rebating when the company accepts in settlement of any premium any amount less than the fixed annual premium stated in the policy, whether the application was made before March 1, or thereafter, and the policy issued after that date; it shall be held to be rebating for an agent to accept in settlement of a premium the full amount required by the policy,'and then to give the applicant, or insured any article of value. Other important provisions of the list of rules follow: No company shall be admitted to do business in the state which issues policies containing any clause, or which issues in connection with any policy any separate paper or contract, promising, any special dividend or benefit to the insured. Reciprocal conditions between this state and other states, under the laws of which policies are issued and delivered in this state, shall prevail when the interests of the policy are properly safeguarded, as a safeguard is judged according to the Indiana law. The auditor reserves the right to examine and approve any form of policy before a risk is written. A policy must not provide, in any way, for any special dividend or benefit to be paid to the Insured. A policy must not provide that the insurance shall begin more than six months before the original application is made. <■ A policy must provide for reinstatement after three years of default upon evidence of the insurability of the policy holder, and upon payment of arrears if the original policy has not been surrendered, and is still in force. A policy must provide for the payment on premiums in advance. A policy must declare the policy and application to be the entire contract. A policy must declare that it is incontestable after two years except for non-payment of premiums and as to violations of stipulations as to military and naval service. A policy must provide that dividends be not deferred beyond ( years. The policy must provide a table of values and the values in the table must be equal to the full reserve of the policy less not to exceed 2tt per cent of the sum Insured.