in the case of Mississippi, individuals, firms or corporations indemnifying themselves through reciprocal contracts are exempt. Louisiana exempts policies of "life and endowment insurance which include provisions for the waiver of premiums or other benefit in the event of accident or other disability," and policies of reinsurance. Kentucky also exempts mutual companies and inter-insurance associations.

The Colorado law prohibits the licensing of any one as agent, broker, or solicitor who is not a resident of the state, and the Kansas law prohibits the commissioner from licensing anyone not a resident of the state. The Alabama, Nebraska, and Texas laws require companies to file an affidavit that it has not violated any provisions of the act for the preceding twelve months, and the Minnesota law requires companies to appoint as "its agents in the state residents thereof."

Some of the laws contain other special features, particularly relating to division of commissions. Delaware, Idaho, Montana, Mississippi, Colorado, Pennsylvania, Tennessee, North Dakota, Utah, Arkansas, Florida, and West Virginia require that the agent countersigning the policy shall "receive the full commission thereon when the premium is paid." Wisconsin requires that the agent countersigning the policy "shall be paid the commission on the policy, and Louisiana requires that the authorized agent "shall receive on each policy . . . the full usual commission allowed and paid."

The laws in the following states make no mention of commissions, Alabama, Arizona, Connecticut, Georgia, Illinois, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Hampshire, New Jersey, Oklahoma, Ohio, Oregon, Rhode Island, South Dakota: Virginia, Washington, Wyoming, Missouri, and Kentucky.

The commissioners of Michigan and Wyoming have ruled that agents cannot divide commissions with non-resident agents or brokers, while the attorney general of Kansas has ruled that division of commissions and exchange of business with non-residents is not illegal. The Ohio department has ruled that agents doing business in Ohio must be residents of Ohio and licenses will not be issued to non-residents.

The law of New Mexico prohibits any agent, broker, or solicitor to pay or promise to pay either directly or indirectly any fee, brokerage, or other emolument of any nature to any non-resident person, firm, or corporation "for the obtaining, placing, or writing " of any policy of insurance covering property in New Mexico. Kansas prohibits any authorized company from authorizing or allowing any non-resident person, agent, firm or corporation from issuing or causing to be issued any policy on property in the state. Vermont requires all policies to be countersigned by a duly authorized resident agent of the company issuing the policy, although brokers' licenses may be granted "to persons resident in any other state, if the laws of such state permit the issuance of brokers' licenses to residents of this state."

The laws of Nebraska and Texas prohibit any company from authorizing, allowing, or permitting any non-resident "to issue, sign, countersign, or to deliver or cause to be delivered any policy" except through licensed resident agents of such companies. North Carolina and South Carolina permit the division of commissions between nonresident and resident agents.

RESULTS OF FIRE UNDERWRITING IN THE UNITED STATES. [See National Board of Fire Underwriters; also statistics at close of fire section.]

INSURANCE

RETAIL LUMBERMEN'S ASSOCIATION, Minneapolis, Minn. Organized 1894. J. H. Queal, president; A. R. Rogers, vice-president; W. G. Hollis, secretary; B. C. Bowman, treasurer; O. D. Hauschild, managing underwriter.

RETAIL MERCHANTS ASSOCIATION MUTUAL FIRE INSURANCE COMPANY, Springfield, Ill. Organized 1898. George S. Connolly, president; W. W. Swett, Jr., secretary; Geo. A. Scherer, treasurer; C. R. Lott, assistant secretary; White Dawson, field manager; Geo. Dalenberg, director.

RETALIATORY OR 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. With few exceptions the laws of the several states, though expressed differently, are practically the same, and the purpose, or intent, is clearly expressed in the New York law, re-enacted in 1892, which follows:

"If by the existing or future laws of any State an insurance corporation of this State having agencies in such other Sate, or the agents thereof, shall be required to make any deposit of securities in such other State for the protection of the policyholders or otherwise, or to make payments for taxes, fines, penalties, certificates of authorty, license fees, or otherwise, greater than the amount required by this chapter, from similar corporations of such other State by the then existing laws of this State, then and in every such case all insurance corporations of such State, establishing or here to fore having established an agency or agencies in this State, shall be and they are hereby required to make the like deposit for the like purposes in the insurance department of this State, and to pay the superintendent of insurance for taxes, fines, penalties, certificates of authority, license fees, and otherwise, an amount equal to the amount of such charges and payments imposed by the laws of such other State upon the insurance corporations of this State and the agents thereof."

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, 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. [For text of laws see Cyclopedia for 1913-14, 1915, and earlier volumes. Also taxation and fees, this volume.]

The laws of Wisconsin, Texas, Pennsylvania, Nebraska, Indiana, Missouri have features not found in the laws of the other states, which extend the scope of the retaliatory provisions, while the laws of New Hampshire, Connecticut, and New Jersey differ materially in the application and scope of the retaliatory or reciprocal features. The New Hampshire law makes the retaliatory feature apply if "any state shall by its laws deny any insurance company or citizen of this state any

rights or privileges which are granted to insurance companies or citizens of that state," or if the insurance commissioner or other official, "shall have power to revoke the license of any company of this state' for writing insurance in that state other than through or by a citizen of that state. The laws of Connecticut and New Jersey besides making the retaliatory features apply to any "obligation, prohibition, or restrictions" imposed on companies, also extend the retaliatory features to apply in case a license is refused after a "certificate of solvency and good management," or, in the case of New Jersey, a certificate of the result of any examination made by the department, has been filed with such department. The Nebraska law (acts of 1917) also makes the reciprocal provisions apply in respect to the interest rate assumed in valuing policies of life insurance, and also in respect to restrictions applying to agents' licenses.

RETROCESSION. The word is used in relation to reinsurance transactions and in that connection has come to have rather a distinct meaning. The term means literally, "giving back," but in insurance means reassignment, or a "handing on.' In practice it amounts simply to reinsurance by a reinsurer, and the practice is carried on under treaties, so-called, which are known as retrocession treaties. The reinsurance is automatically "handed on," that is, just as the direct writing company reinsures its excess lines, so the reinsuring company "hands on" its excess lines under the treaty by which the retrocession company obligates itself to accept a certain percentage of the excess liability assumed by the reinsurance company.

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. A reorganization was effected in March, 1917, and the present officers are: President, Franklin C. Parsonage, Newport; vice-presidents, George_R. Smith, Woonsocket; Robert L. Spencer, Providence; George I. Parker, Pawtucket; secretary and treasurer, Thomas J. Freeman, Providence.

RHODE ISLAND INSURANCE COMPANY of Providence, R. I. Organized 1907; capital, $500,000. George L. Shepley, president; Emil G. Pieper, vice-president and secretary; Tunis Johnson, Jr., assistant secretary.

RHODE ISLAND MUTUAL FIRE INSURANCE COMPANY, Providence, R. I. Organized 1848. John R. Freeman, president and treasurer; Theodore P. Bogert, secretary; Benj. G. Buttolph, Edwin D. Pingree, and S. G. Walker, vice-presidents.

RICHLAND MUTUAL INSURANCE COMPANY, Mansfield, Ohio. Organized 1850. A. C. Cummins, president; R. Smith, secretary; S. A. Jennings, treasurer.

Or

RICHMOND INSURANCE COMPANY of New York. ganized in 1836 as the Richmond County Mutual; reorganized as a stock company in 1907. Capital $200,000. J. F. Smith, president; E. R. Moody, vice-president; David G. Wakeman, secretary.

ROCKY MOUNTAIN FIRE INSURANCE COMPANY, Great Falls, Mont. Organized 1911; capital, $278,531; Sam Stephenson, president; John E. Dawson, vice-president; Geo. H. Shanley, vice-president; Alfred Malmberg, vice-president; Leo P. McMeel, secretary, treasurer, and underwriting manager.

ROSSIA INSURANCE COMPANY, THE, St. Petersburg, Russia. Carl F. Sturhahn, United States manager, Hartford, Conn. (Reinsurance business.)

ROYAL EXCHANGE ASSURANCE of London. Richard D. Harvey, United States manager, 92 William Street, New York.

ROYAL INSURANCE COMPANY, Limited, of Liverpool, England, commenced business in the United States in 1851 and transacts fire, marine, and all other kinds of insurance business as described in Sections 110 and 150 of the Insurance Laws of the state of New York. Edward F. Beddall, general attorney for the United States; William Mackintosh, secretary; Cecil F. Shallcross, manager; John E. Hoffman, marine underwriter, New York department, 84 William Street, New York; Milton Dargan, manager Southern department, Atlanta, Georgia; Messrs. Field & Cowles, managers, New England department, Boston, Mass.; George W. Law, manager Western department, Chicago, Ill.; Rolla V. Watt, manager Pacific Coast department, San Francisco, Cal.

Assets held in the United States for the special protection of American policyholders, as of December 31, 1917, $16,475,925; liabilities, $12,086,966. United States surplus, $4,388,959.

RUBBER MANUFACTURERS' MUTUAL FIRE INSURANCE COMPANY, Boston, Mass. Organized 1885. Arthur H. Lowe, president; George B. Hodgman, vice-president; Benjamin Taft, secretary and treasurer; W. P. Brophy, assistant secretary and assistant treasurer.

RUSSIAN REINSURANCE COMPANY, St. Petersburg, Russia. Paul E. Rasor, United States manager, New York.

S

SAFEGUARD INSURANCE COMPANY, New York, N. Y. Organized 1879; reorganized 1915; capital, $200,000. A. G. Mcllwaine, Jr., president; Edward E. Pearce, vice-president; Henry W. Gray, Jr., vice-president and secretary.

SAFETY FUND LAW. This law, which permitted the accumulation by a fire insurance company, from its profits, of a fund, onehalf of which may be deposited with the insurance department to be held for the protection of the unearned premiums of the company and to serve as a second capital in said case its capital and assets are swept away by a great conflagration, the other half to be retained by the company for the payment of losses, was enacted by the state legislature in its session of 1874 (passed April 16th) on the suggestion of Insurance Superintendent Chapman. The legislature in 1915 passed a law providing that no company should establish such funds after June 1, 1915, and providing further for the discontinuance of the special reserve and guaranty surplus funds already created under the law.

Surplus fund laws are in force in five other states, the provisions thereof being similar to those of the law of New York, which was the first to enact legislation of this character. The states and their laws are:

Minnesota, Chapter 18, laws of 1876, re-enacted by Section 98 of the general law of 1895, and Chapter 437, laws of 1900 and Chapter 263, laws of 1911.

Rhode Island, Sections 26 to 32, inclusive, of Chapter 156 of the Public Laws.

utes.

Wisconsin, Sections 1909 to 1913, inclusive, of the Revised Stat

New Jersey in 1908 enacted a somewhat similar law. [Chapter 258, laws of 1908].

New Hampshire, Chapter 28, laws of 1911.

Nebraska, Paragraph 3252, section 116, from revised statutes of 1913.]

SALAMANDRA INSURANCE COMPANY of Petrograd, Russia. Organized 1846. Meinel & Wemple, Inc., United States manager, New York City.

SALEM MUTUAL FIRE INSURANCE COMPANY, Salem, Mass. Organized 1838. S. Herbert Wilkins, president; Arthur Derby, secretary and treasurer.

SALVAGE CORPS. [See Fire Patrols and Salvage Corps in the United States.]