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ANTI-REBATE LAWS. Following is a list of the states which have laws prohibiting the giving of rebate of premium to the insured by life and other insurance companies or their agents.

The first anti-rebate law applying specifically to the business of life insurance was enacted by Massachusetts in 1887. The previous year, it is true, Louisiana passed a law prohibiting the allowance of rebates in insurance, but no class of insurance was named in the act; it was supposed to refer to fire insurance, and it was not until later that an opinion was given by the attorney-general of the state that its provisions were applicable to the practice of life insurance.

The anti-rebate laws of a number of the states, while at first applying only to life insurance, have been amended to include fire insurance as well as other forms of insurance in their prohibitions, and in some states the laws prohibit the sale of stock in connection with insurance, or as an inducement to insurance, and also prohibit twisting. The Indiana law defines the term "rebate" to mean "anything of value, or the making of an agreement, expressed or implied, that will directly or indirectly diminish any premium below the amount specified in the policy," excepting payment of dividends under participating policies.

The Nebraska law also defines the word in the same terms practically, but also excepts bonuses paid or allowed directly by any company upon non-participating policies which have been in force at least five years.'

Anti-rebate laws are in force in the following states: Alabama, Arizona, Arkansas, Colorado, Connecticut, Delaware, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming.

The laws of the following states prohibit the sale of stock "in connection with or as an inducement to insurance": Alabama, Arizona, Colorado, Idaho, Maine, Massachusetts, Michigan, Minnesota, Montana, Nebraska, New Hampshire, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Washington, West Virginia, Wisconsin, and Wyoming.

The laws of Indiana, Idaho, Maine, Nebraska, New Mexico, New York, Ohio, Oklahoma, Pennsylvania, and West Virginia prohibit the insured from "knowingly receiving or accepting a rebate." The Wisconsin law provides that " Notwithstanding any violation of this section the policy shall be valid, but the insured, having knowingly and wilfully violated any provisions of this section, shall be entitled to recover from the company only such proportion of the amount otherwise payable . . . as the amount of the premium or premiums which have become payable, according to the terms of the policy, deducting any rebate and the value of any special favor or advantage or consideration or inducement . . . bears to the amount of such premium or premiums."

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For full text of laws enacted prior to 1914, see Cyclopedia for 1913The following is a statement of anti-rebate leigslation enacted in 1914 and 1915:

14.

NEBRASKA. The law reads as follows:

Section 144. Rebating Prohibited. -No insurance company by itself or any other party and no insurance agent or broker, personally or by any other party, shall offer, promise, allow, give, set off or pay, directly or indirectly, any rebate of or part of the premium payable on the policy or of any policy, or agent's commission thereon or earnings, profts, dividends, or other benefits founded, arising, accruing or to accrue thereon or therefrom or any paid employment or contract for service, or for advice of any kind, or any other valuable consideration or inducement to or for insurance, on any risk authorized to be taken under this act, now or hereafter to be written, which is not specified in the policy contract of insurance; nor shall any such company, agent or broker, personally or otherwise, offer, promise, give, sell or purchase any stock, bonds, securities or property, or any dividends or profits accruing or to accrue thereon, or other thing or value whatsoever as inducement to insurance or in connection therewith which is not specified in the policy. No insured person or party shall receive or accept, directly or indirectly, any rebate of premium or part thereof or agents or brokers' commission thereon, payable on the policy, or on any policy of insurance, or any favor or advantage or share in the dividends or other benefits to accrue on, or any valuable consideration or inducement, not specified in the policy contract of insurance.

Another section (Section 142) prohibits the circulation of any form of literature misrepresenting the terms or benefits of any policy or for the purpose of inducing a policyholder in another company to lapse his insurance in such company. Section 143 provides that "No life insurance company shall make or permit any distinction or discrimination in favor of individuals, between insurants of the same class and equal expectation of life, in the amount of payment of premiums or rates charged for policies of life or endowment insurance, or in the dividends or other benefits payable thereon, or in any other of the terms and conditions of the contract it makes; nor shall any company, agent, solicitor, or broker make any contract of insurance or agreement as to such contract, other than is plainly specified in the policy thereon. . . . Provided, however, that nothing herein contained in this section shall be construed to permit the entry into any contract of life insurance upon groups taken from any fraternal beneficiary society doing business in this state."

The same section permits industrial companies to issue policies at special rates (but without discrimination) to labor or similar organizations in an aggregate of not less than one hundred members where premiums are paid through the secretary of such organization or by the employer. The same section prohibits a life company issuing agency company stock or other special or advisory board contract in the state, and prohibits the licensing of a company issuing such contracts to do business in the state, and also prohibits the sale of stock or other securities as an inducement to insurance or in connection therewith. The act contains the usual provision as to giving testimony, and also makes it unlawful for any company or agent thereof to hypothecate, sell, or dispose of a promissory note, received in payment for any part of a premium on a policy of insurance applied for under the provisions of this act, prior to the delivery of the policy to the applicant." Violation of Sections 141, 142, and 143 subjects the offender to revocation of license and no license shall be issued to such

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company, agent, or broker within three months from the date of revocation, and a general penalty of a fine not to exceed one hundred dollars, or imprisonment in the county jail not to exceed three months is provided.

KENTUCKY. The law, Section 656 of the Laws of 1893, was amended in 1914, and the law now reads:

Section. 656. No life insurance company doing business in Kentucky shall make or permit any distinction or discrimination in favor of individuals between insurants of the same class and equal expectation of life in the amount or payment of premiums or rates charged for the policies of life or endowment insurance, or in the dividends or other benefit payable thereon, or in any other of the terms and conditions of the contracts it makes; nor shall any such company or any agent thereof make any contract of insurance or agreement as to such contract, other than is plainly expressed in the policy issued thereon; nor shall any such company or agent pay or allow, or offer to pay or allow, as inducement to insurance, any rebate of premium payable on the policy, or any special favor or advantage in the dividends or other benefit to accrue thereon, or any valuable consideration or inducement whatever not specified in the policy contract of insurance. Every company, or officer or agent thereof, who shall violate the provisions of this Section, shall be fined in any sum not exceeding five hundred dollars, to be recovered by action in the name of the Commonwealth, and on collection, paid into the State Treasury. When evidence shall be presented to the Insurance Commissioner or facts shall be obtained by him which show a prima facie case of the violation of this Section by any such company, and in his opinion it shall be necessary to employ examiners or other persons than those connected with his office in the work of enforcing compliance with this Section, he may allow a reasonable compensation to such persons for services rendered and for expenses incurred as he may deem necessary in each case. Such allowances for services and expenses shall be approved by the Auditor of Public Accounts and paid from the fund out of which the Insurance Commissioner is paid, except, however, that when an agent, or company, is found guilty, then the expenses of such investigation are to be paid by the company.

For the purposes aforesaid the Insurance Commissioner, or his deputy, or persons making the examination or investigation, shall have free access to all the books and papers of an insurance company that relate to its business and to the books and papers kept by any of its agents and may summon and qualify a witness under oath and examine the directors, officers, agents, trustees, employes and policyholders of any such company and any other persons, as to the violation of this Section. Whosoever, without justifiable cause refuses to appear and testify when so required, or obstructs the Insurance Commissioner in the discharge of his duties, shall for each offense be punished by fine not exceeding one thousand dollars or by imprisonment not exceeding one year.

MAINE. An act was passed in 1915 applying to fire and liability insurance (Chapter 102) which reads as follows:

Section 1. No insurance company transacting fire or liability insurance in this state, and no agent or broker transacting fire or liability insurance, either personally or by any other party, shall offer, promise, allow, give, set-off or pay, directly or indirectly, as an inducement to fire or liability insurance on any risk in this state, now or hereafter to be written, any rebate of or part of the premium payable on any policy or of the agent's commission thereon; nor shall any such company, agent or broker, personally or otherwise, offer, promise, allow, give, set-off or pay, directly or indirectly, as an inducement to such fire or liability insurance any earning, profit. dividends or other benefit, founded, arising, accruing or to accrue on such insurance. or therefrom, or other valuable consideration, or any special favor which is not specified, promised or provided for in the policy of insurance; nor shall any such company, agent or broker, personally or otherwise, offer, promise, give or sell as an inducement to such insurance any stocks, bonds, securities or property, or any dividends or profits accruing or to accrue thereon, nor, except as specified in the policy, offer, promise, or give any other thing of value whatsoever, or purchase any stocks. bonds. securities or other property, for which shall be paid or agreed to be paid more than the fair and reasonable value thereof.

ARKANSAS, INSURANCE SUPERVISION IN, 1873-1915

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Section 2 provides that the above section shall not present a company paying to another company or duly authorized agent or broker, or receiving a commission on any policy under which the company or agent is insured, and Section 3 makes a violation of the act a misdemeanor, and subject to a fine of not more than one hundred dollars, and imprisonment not exceeding six months in the discretion of the court. The commissioner may also revoke the company's, agent's, or broker's license.

The legislature of South Carolina in 1915 passed an act providing "That it shall not be considered in violation of Section 2730 of the Civil Code, Volume I, and Section 892 of the Criminal Code, Volume II of the Laws of South Carolina of 1912 to offer to make or the making of loans to citizens of this state to be secured by mortgage of real estate or other collateral security." Section 2 repealed all acts or parts of acts inconsistent with the terms of this act. The sections named in the above act prohibit rebating. [See Cyclopedia for 1913-14 for full text of law.]

APPEL, DANIEL FREDERICK, vice-president and director of the New England Mutual Life Insurance Company, was born in Cumberland, Md., June 24, 1857. From 1875 to 1885 he was engaged in fire insurance work as local agent in Pennsylvania and field agent in the West. Was appointed Indiana general agent for the New England Mutual Life in March, 1885, superintendent of agencies in March, 1895, and was elected secretary in March, 1905. He was elected to his present position in 1908.

APPLETON, SAMUEL, United States manager for the Employers' Liability Assurance Corporation of London, was born in the city of New York, April 7, 1846. He was liberally educated, and from 1862 to 1867 held a position in an importing house in Boston, since which time he has been in the insurance business. He was manager of a fire insurance company in Boston from 1869 to 1884, and from 1886 to 1899 general agent at Boston for The Employers' Liability Assurance Corporation. March 1, 1899, he was appointed one of the United States managers in the firm of Appleton & Dana, Boston, Mass., and on January 1, 1903, he became sole manager and attorney.

By

ARIZONA, INSURANCE SUPERVISION IN 1887-1915. an act passed in 1887 the territorial treasurer of Arizona was charged with the supervision of insurance, but in 1901 an act was passed transferring the authority to the territorial secretary. [For names of officials, see Cyclopedia for 1911-13 and 1913-14.] Under an act passed in 1912, supervision of insurance was transferred to a State Corporation Commission. C. C. Thompson is superintendent of insurance under the commission.

ARKANSAS, INSURANCE SUPERVISION IN, 1873-1915. By the insurance law of 1873 the auditor of the state, who is elected by the people for two years, is made insurance commissioner ex-officio.

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The active duties of supervision are in charge of a deputy insurance commissioner," who is appointed by the state auditor. M. F. Dickinson is auditor and H. C. McCain is deputy insurance commissioner.

ARKANSAS LIFE UNDERWRITERS ASSOCIATION. [See Little Rock Life Underwriters Association.]

ARMSTRONG, DAVID W., JR., was born at Louisville, Ky., February 14, 1870. He entered Columbia College in the class of 1896, and after leaving college became secretary to the manager of the United States Casualty Company, and subsequently assistant in charge of its burglary insurance department. He then entered the service of the New Amsterdam Casualty Company as special agent, and resigned to organize the burglary insurance department of the United States Fidelity and Guaranty Company, in 1900, which position he resigned upon election as assistant secretary of the Aetna Indemnity Company in 1903. He became assistant secretary of the National Surety Company in 1904, and organized its burglary insurance department, and in 1908 became secretary, which position he held until July, 1911, when he resigned to organize The Armstrong Agency, Incorporated, of which he was president, and to become Resident Director in New York City of the New England Casualty Company, of Boston, and in February, 1912, he was elected president of the Empire State Surety Company, continuing as president of the agency company, and of the Empire State Surety until it was retired. He is president of the National Fidelity and Casualty Company of Omaha, a director in the National Surety Company, and The Armstrong Agency, Incorporated, as well as several other companies not identified with insurance interests. He is a member and governor of several clubs. He has been secretary of the Board of Casualty and Surety Underwriters, chairman of the Burglary Insurance Underwriters' Association, and president of the Casualty and Surety Social Club, and has contributed occasional articles to insurance journals and to "The Business of Insurance." He was one of the editors of the International Insurance Encyclopedia. He is also a member of the Committee on Insurance Education of the International Association of Casualty and Surety Underwriters.

ARNOLD, OSWALD J., secretary and actuary of the Illinois Life Insurance Company, was born in Rochester, N. Y., of Scotch-Irish parentage, October 29, 1873. He received a common and high school education, and graduated from the University of Chicago with the degree of B. S. in 1897. He began his insurance career with the Illinois Life Insurance Company, and was appointed assistant secretary and actuary in 1900. A year later he was appointed secretary, as well as actuary, and elected a director, and a member of the executive and finance committees of the board. He is a member of the board of governors and a former president of the American Institute of Actuaries.

ASHBROOK, JOSEPH, former vice-president and manager of the Insurance Department of the Provident Life and Trust Company of Philadelphia. Retired. [See Cyclopedia for 1913-14, page 380.]

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