HEARINGS

BEFORE THE

SUBCOMMITTEE ON ANTITRUST AND MONOPOLY

OF THE

COMMITTEE ON THE JUDICIARY,
UNITED STATES SENATE

NINETY-FIRST CONGRESS

FIRST SESSION

PURSUANT TO

S. Res. 40

PART 15

STATE REGULATION FOR SOLVENCY, CONGLOMERATES
AND INSURANCE COMPANIES, AND CASE STUDY OF ONE

NONRENEWAL

FEBRUARY 24, 25, AND 26; MARCH 4 AND 5; AND MAY 7, 1969

20-975

Printed for the use of the Committee on the Judiciary

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1970

CONTENTS

STATE REGULATION FOR SOLVENCY

WITNESSES

Albertson, Burton J., retired insurance examiner, Boise, Idaho...

Eanes, F. Tom, insurance consultant, Boise, Idaho

Goodman, Oscar R., professor of finance, Roosevelt University, Chicago,

Ill___

Page

8909

9060

8950

Horne, Allan, Arkansas Insurance Commissioner; accompanied by Ernst

Fennell, executive assistant commissioner, and John Norman Harkey,

former insurance commissioner. -

8815

Pack, David M., Tennessee Commissioner of Insurance and Banking; ac-

companied by Paul Tidwell, Tennessee Deputy Commissioner of Insur-

ance and Banking.

9022

Scott, Gordon H. S., administrative lawyer, Appellate and Test Case Divi-

sion, Legal Aid Bureau of Chicago; accompanied by John Schlegel..

Travis, Dempsey, Chicago insurance agent; accompanied by Judson Miner,

attorney, and Milton Moses, insurance broker...

8989

8859

Welty, Dan, professor, Mankato State College, Mankato, Minn.

9004

EXHIBITS AND APPENDIX

Table 1.-Insolvent fire and casualty companies who wrote automobile

insurance, 1958-68- .

8811

Table 2.-Insolvent auto insurance companies by State of domicile,

1958-68-

8813

Table 3.-Summary of policyholders and claimants actual and potential

recovery from insolvent auto insurance companies by State....

Table 4.-Claims filed, assets and payout related to total administrative

expenses, legal fees and salaries with respect to insolvent auto insurers

by State

Table 5.-Total premiums, losses paid, agents commissions, and salaries

of certain insolvent fire and casualty insurance companies in Illinois

and Arkansas...

Letters and background material on failure of automobile insurance

company in England.

8814

8815

8812

8828

Postal fraud internal reports on investigations of individuals under indict-

ment due to failure of certain high risk automobile insurers_

H.R. 6778, Amendments to the Bank Holding Company Act of 1956...

Bulletin of Illinois State Insurance Commission, 1948, dealing with un-

availability of fire insurance in sections of Chicago--

8837

8845

8861

Examples of insurance company rejections of applications for insurance in

sections of Chicago, 1968.

8863

Ads soliciting insurance agents and "turndown" letters submitted by Mr.

Milton Moses___

8881

Table 6.-Number of insurance examiners related to premium volume

by States.--