196 REINSURED, Retired, and FAILED INSURANCE COMPANIES REES, HENRY E., vice-president of the Etna Insurance Company of Hartford, is a native of Macon, Ga., where he was born April 29, 1857. He went into the local fire insurance business in his native city in 1881, and continued until 1884, when he was appointed special agent of the South Eastern Tariff Association, with headquarters at Atlanta. From 1885 to 1889 he was Southern special agent of the North British and Mercantile Insurance Company, and from 1889 to 1897 he served the Etna in the same capacity. In the latter year Mr. Rees was called to the home office of that company, where his long experience with Southern fire underwriting was utilized, and he was appointed assistant secretary, and elected secretary May 6, 1907, and vicepresident April 24, 1912. On November 9, 1911, Mr. Rees was elected president of the Eastern Union, which position he held for two years. REINSURANCE AND SURPLUS LINE LAWS. The laws of a number of states prohibit reinsurance of risks, either in whole or in part, in companies not authorized to do business in the state. Such laws are in force in Arkansas, Colorado, Florida, Illinois, Louisiana, Massachusetts, Michigan, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Pennsylvania, Texas, Virginia, West Virginia. The laws of Arizona and Washington prohibit reinsurance in an alien company pany not authorized to do business in the United States and not having a deposit in some state of the United States. In Delaware the commissioner may permit such reinsurance. a com The above-named states, with the exception of West Virginia, North Dakota, New Mexico, Nevada, Florida, Colorado, Arkansas, and Arizona, however, make special provision for placing insurance in unauthorized companies, and the laws of Connecticut, Kansas, Kentucky, Maryland, Minnesota, Missouri, New Jersey, New York, Tennessee, Vermont, Wisconsin, which place no restrictions on reinsurance, make special provision for placing insurance in companies not authorized to do business in the state. [For a summary of the laws and restrictions as to reinsurance see Cyclopedia for 1913-14.] REINSURED, RETIRED, AND FAILED INSURANCE COMPANIES IN 1914. The following is a list of the joint stock fire insurance companies which ceased to do business for various causes in 1914. NAMES Bluff City Fire, Memphis, Tenn.. Paid-up Capital $100,000 250,000 300,000 474.729 Reinsured By Hernando, Memphis. Nord Deutsche, Hamburg- Boston Boston 200.000 Home, N. Y. RESIDENT AGENTS LAWS 197 The Assured's National Mutual, Decatur, Ill., Valley City Mutual, North Dakota Home Mutual, Jackson, Miss., American Fire, Lexington, Ky., failed, and the Maryland Mutual and Patapsio Mutual of Baltimore, Md., the Retail Merchants, Fire, Sioux Falls, South Dakota, Saugus Mutual, Saugus, Mass., and Textile Manufacturers Mutual, Providence, R. I., reinsured. Several Wisconsin and South Dakota county mutuals either retired or reinsured. The Buffalo Commercial, Buffalo, N. Y., was merged in the Buffalo German. RELIANCE INSURANCE COMPANY of Philadelphia was incorporated 1841. Capital, $400,000. William Chubb, president; Charles J. Wister, vice-president and secretary. Admitted assets, December 31, 1914, $1,539,343.81; liabilities, $963,822.53. RELIANCE MARINE INSURANCE COMPANY, THE (Limited), Liverpool, Eng. W. L. H. Simpson, attorney and manager, New York. Admitted assets, December 31, 1914, $378,989.34; liabilities, $106,890.01. REMAK, GUSTAVUS, JR., president of the Insurance Company of the state of Pennsylvania, Philadelphia, was born in Philadelphia, March 19, 1861. He is a graduate of the University of Pennsylvania, class of 1882, and graduated from the law department of the University in 1884, and was admitted to the Philadelphia bar in June of that year. He was elected to his present position in 1913. RESIDENT AGENTS LAWS. Laws relating to the writing of risks in the state by insurance companies through local agents only are in force in the following states: Alabama (1907); Arizona (1913 and 1915); Arkansas (1901 and 1903); Colorado (1907 and 1915); Connecticut (1893); Delaware (1901); Florida (1899 and 1903); Georgia (1896 and 1901); Hawaii (1903); Idaho (1911, 1913, and 1915); Illinois; Iowa (1897); Kansas, Louisiana (1902); Maine (1903); 1905, and 1913); Maryland (1900); Massachusetts (1907); Michigan (1912); Minnesota (1905); Mississippi (1902); Missouri (1897); Montana (1907); Nebraska (1909); Nevada (1901); New Hampshire (1899 and 1911); New Jersey, New Mexico (1901 and 1913); North Carolina, (1905); North Dakota (1905); Ohio, Oklahoma (1909); Oregon (1899); Pennsylvania (1899); Rhode Island (1896); South Carolina (1900 and 1915); South Dakota (1895); Tennessee (1899); Texas (1903); Utah (1907); Vermont (1908); Virginia (1906); Washington (1911); West Virginia (1901); Wisconsin (1911); Wyoming (1910 and 1915). [For full text of the laws see Cyclopedia for 1913-14.] ARIZONA. Acts of 1915 amending Section 26 and repealing Section 57D of the Laws of 1913: It shall be unlawful for any foreign insurance company to make, write, place, or cause to be made, written, or placed in this state any insurance policy or contract of any kind to provide against any contingency which may be insured or guaranteed against, unless done through its duly and regularly appointed and authorized agent or agents residents of this state; any insurance company violating this section shall have 198 RESIDENT AGENTS LAWS its certificate of authority to do business in this state suspended not less than one year, and it shall only be renewed upon a written pledge from the directors or executive body in authority over the officers that this section will be fully and faithfully observed. When an agent or solicitor of any insurance company doing business in this state accepts an application for insurance from any person not provided with the certificate for a broker or an agent or solicitor as required herein, and in any way compensates or promises to compensate such person for soliciting such application, the commissioner shall, upon due proof and notice suspend or revoke the certificate of such agent or solicitor; and if it shall appear to the commissioner that the company for which such agent or solicitor is acting is guilty of participation in the acts of such agent or solicitor, the commissioner shall suspend the certificate of authority of such company to do business in this state for a period of not less than one (1) nor more than three (3) months for each and every offense. COLORADO. Act of 1907 creating an insurance department as amended in 1915. No foreign fire or casualty insurance company doing business in this State shall make, write, place or cause to be made, written or placed any policy, duplicate policy or contract of insurance of any kind or character or any general or floating policy, upon persons or property, resident, situated or located in this State, except after the said risk has been approved, in writing, by an agent who is a resident of this State, regularly commissioned and licensed to transact insurance business herein, who shall countersign all policies so issued, and receive the full commission thereon, when the premium is paid. An additional act relating to the licensing of agents contains the following: "No person shall be licensed as an agent, broker, or solicitor to do fire or casualty business who is not a resident of this state.' IDAHO. Section 16, Chapter 97, Session Laws of 1913, as amended in 1915. It shall be unlawful for any foreign insurance company doing business in this state to make, write, place, or cause to be made, written, or placed in this state any policy, bond, duplicate policy or contract of insurance of any kind or character, or any general or floating policy upon persons or property, resident, situated or located in this state, unless done through an agent who is a resident of this state, legally commissioned and licensed to transact business herein. A resident agent shall countersign all policies so issued (except policies of life insurance) and shall receive the full commission when the premium is paid, to the end that the state may receive the tax required by law to be paid on the premiums collected for insurance on all persons and property resident or located within this state. Provided, this section shall not apply to life insurance companies. An additional act requires every foreign insurance company to file an affidavit with its annual statement that business written or placed in the state has been done "only through agents resident within this state," and legally commissioned to write insurance, and that the agent received the full commission therefor when the premiums were paid. SOUTH CAROLINA. Acts of 1915. That from and after the passage of this Act it shall be unlawful for any insurance company doing business through agents in the state of South Carolina to write, place or cause to be written, placed, or renewed any fire, marine, accident, health, liability, plate glass, steam boiler. burglary, or theft, sprinkler leakage, fly wheel, automobile property damage, credit or workman's collective insurance, or fidelity and surety bond covering any risk or on property located in the state of South Carolina, except through or by the duly authorized agent or agents of such insurance company or association residing and doing business in this state. The full premium shall be paid to such agents who are entitled to and shall receive the same commission_on such business as the company allows them on other business of the same class. The RETALIATORY OR RECIPROCAL LAWS 199 payment of a fee or any other consideration than the full commission is held a violation of law. Agents who may sign or insurance companies who may cause to be signed any policy or indemnity contract as the resident agent of an insurance company and fails to collect the full premium for such insurance and retain the proper commission which is due such agent may have their license revoked as the penalty for aiding in an evasion of the law: Provided, however. The agents licensed under the insurance laws of this state may write insurance at the request of other agents or brokers and allow said agents or brokers not exceeding one-half of the commissions which they receive on the business written. WYOMING. Acts of 1910, as amended in 1915. Section I. It shall be unlawful for any foreign insurance company to make, write, place, or cause to be made, written, or placed in this state any insurance policy or contract of any kind to provide against any contingency which may be insured or guaranteed against, unless done through its duly and regularly appointed and authorized agent or agents, residents of this state; any insurance company violating this section shall have its certificate of authority to do business in this state suspended not less than one year, and it shall only be renewed upon a written pledge from the directors or executive body in authority over the officers that this section will be fully and faithfully observed. RESULTS OF FIRE UNDERWRITING IN THE UNITED STATES. The following general statement of the fire insurance business by joint stock companies in the six years from 1909 to 1914. inclusive, is compiled from the New York fire insurance reports. The statistics cover, practically, all the principal joint stock companies doing business in the United States, and are for December 31 of each year named: RECIPROCAL LAWS. Thirty-nine states inflict retaliatory penalties on the companies of other states or of other states and countries. New York appears to have originated this kind of legislation as far back as 1865. [For text of laws see Cyclopedia for 1913-14 and earlier volumes.] Retaliatory or reciprocal laws are now in force in the following states: Alabama, Arizona, California, Colorado, Connecticut, Delaware, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Vermont, Washington, Wisconsin, and Wyoming, West Virginia. In addition to the above Arkansas has a retaliatory law which is made applicable only in respect to deposits, and Nevada has a law applying to assessment companies. [See also taxation and fees, this volume.] RHODE ISLAND ASSOCIATION OF LOCAL INSURANCE AGENTS was organized in July, 1900, with the following officers: President, C. H. Beach; vice-presidents, H. Bull, Jr., C. A. Morgan, and G. H. Smith; secretary and treasurer, C. F. Newcomb. The present officers, elected in August, 1914, are: President, James Gallivan, Jr., Providence; first vice-president, George R. Smith, Woonsocket; second vice-president, R. L. Spencer, Providence; third vice-president, Franklin C. Parsonage, Newport; secretary and treasurer, Stanley M. Chase, Pawtucket; executive committee, George L. Gross, Providence; Warren W. Logee, Pascoag; Charles H. Beach, Providence; James E. Newell, Providence; Myles M. Mulligan, Pawtucket; William E. Brightman, Newport; Fred J. Ryan, Providence. RHODE ISLAND INSURANCE COMPANY of Providence, R. I. Organized 1907; capital, $400,000. George L. Shepley, president; Emil G. Pieper, vice-president and secretary; Tunis Johnson, Jr., assistant secretary. Assets, December 31, 1914, $1,435,621.52; liabilities, $707,019.87. RHODE ISLAND MUTUAL FIRE INSURANCE COMPANY, Providence, R. I. Organized 1848. John R. Freeman, president and treasurer; Theodore P. Bogert, secretary; vice-presidents, Benj. G. Buttolph and Edwin D. Pingree. Admitted assets, December 31, 1914, $1,358,795.82; liabilities, $838,911.87. RICE, JOHN F., was born at Milwaukee, Wis., February 9, 1864. He was educated at the Milwaukee Academy, and entered the fire insurance business at an early age. He was three years in the Chicago local agency of E. M. Teall & Co., and afterward special agent of the Fire Insurance Association of London. For two years he was assistant manager for the Union of California; in 1891 he was appointed assistant United States manager of the Prussian National, and in 1897 was placed in charge of the eastern department of the company, with headquarters at New York. In 1903 he resigned that position and became associated with John M. Whiton & Co., having charge of the general business of the Eastern of New Jersey throughout the United States, and the New England department of the Concordia of Wisconsin. On May 1, 1908, he was appointed manager of the Maryland department of the General |