iarize himself to any great extent with the details and intricate phases of some of the problems of the insurance business with which we have to deal. I, therefore, enter upon a discussion of some of these matters with no little hesitancy, and shall keep before me this fact and endeavor to limit my remarks to observations and experiences of the past year, and in doing so believe that I have a report of some value to those having business with the Department and to our citizens in general.

A few remarks as to the duties of the Insurance Commissioner will not be out of place at this time. Certain duties are outlined in the statute creating the office. If the work ceased when these perfunctory duties were performed the task would not be a particularly difficult one. But coincident with the performance of these ministerial duties, comes responsibilities of far greater moment. The Commissioner must at all times consider the various questions which are presented to him in an impartial and impersonal manner in order to do justice and deal equitably thereby. The statute endows him with great power, and that power must not be taken advantage of and misused. An unprejudiced consideration must be had at all times or the object of state supervision will be defeated. The Commissioner should hold a proper regard for the importance of the office and should at all times be prepared to assist and co-operate with those having an interest in insurance matters, but should not construe this importance to such an extent as to appear autocratic. His duties are threefold in character and these points must be borne in mind: First, a duty to the State, by virtue of the laws creating the office; second, a duty to all citizens of the State to see that their rights are respected and to guard them against the operations of "wild cat" and irresponsible concerns; third, a duty to the authorized companies and their agents, to that they have that protection which the statute under which they operate either expressly or impliedly grants. No subject should be too trivial or unimportant to receive careful consideration, for it is only by the satisfactory adjustment of the little matters that the public can be made to see that the attitude of legitimate companies is not primarily hostile to their interests.

see

COMPLAINTS.

Numerous complaints covering unsatisfactory adjustments and claims are presented to the office. While the Department should not be made a collection agency, we believe it is one of the attaching responsibilities of the office to give such complaints consideration and assist in bringing about just settlements to all parties interested. Although there are no express or specific provisions in our laws calling for this service, we believe that much good results therefrom by adopting this custom. We are confident that through the services of this Department in this particular line of work numerous controversies have been avoided and much consequent litigation prevented. From the increasing number of requests received there is no doubt but that the citizens of this state expect the Insurance Department to render them this service. We can point to a number of cases with satisfactory terminations and we believe the results were consummated without abusing the statutory power which is conferred upon the Commissioner.

VIOLATIONS.

Our insurance laws are enacted to protect the citizens of the State by keeping out all insurance companies or associations that are not properly organized and conducted, and also to supervise all companies entering the State and doing business therein, and those representing them. Under our laws no company or agent can do business in this State until licensed by the Commissioner. The law provides that not only shall the company be licensed, but that each and every person representing them in any capacity as agent shall also have a license. In this way the citizens of the State are not only protected by keeping out "fake" companies and those conducted upon improper lines, but by the fact that it can be shown that each agent is connected with and really represents the company in whose behalf he is dealing with our citizens. In this way the company can be connected with and made responsible for its agents' acts and dealings.

This office is charged with looking after all violations of the insurance laws, and the activity in this respect during the past year has been of service, as there has been a decrease, even during this time, of the number of violations. The Department will continue to conduct an aggressive campaign looking to the elimination of such violations as can be apprehended. Difficulty is experienced by the Department in this work by the evident reluctance on the part of those having knowledge of violations to furnish evidence, and it is only through the cooperation of our citizens that this matter can be handled in a way to bring results. All violations should be promptly reported so that the Department can take action.

UNAUTHORIZED COMPANIES.

They

ich the

these

It is surprising that some of our citizens and good business men continue to patronize these unlicensed compe S. are probably misled by the plausible circulars with mails are flooded. The mania for placing insurance. unlicensed and unknown companies, and, in many cases worthless and fraudulent concerns, is amazing. Most of them could not be authorized under our laws as they do not have the financial standing to entitle them to do business in the State. Their contracts are null and void under our laws and are not enforceable in our courts. Parties who place insurance with unlicensed companies will have the following conditions to contend with: First, the difficulty incident to the adjustment of any loss which may occur as the policyholder is without recourse to the courts of this State to secure his rights and must resort to the home state of any such company; second, the Insurance Department is without direct authority to assist in the adjustment of any questions which may arise between the insured and the insuring company; third, insurance premiums in this State are taxed at the rate of two and one-fourth per cent. on the net amount thereof, which is for the benefit of the public generally and the maintenance of this Department. Where insurance is placed with unauthorized companies the State loses the tax; fourth, the Department will endeavor to appre

hend any person soliciting or assisting in placing insurance of this nature in the State of Washington, and action will immediately be taken for the prosecution of such party under the provisions of the insurance laws.

REVENUES.

The fees, taxes and licenses, collected and paid into the State Treasury by this Department have greatly increased each year, until there was collected and paid in for the past fiscal year $344,166.72, an increase of $17,960.50 over the amount collected for the preceding year ($326,206.22).

The gradual increase of the revenue collected through this Department is more clearly shown by a comparison with the amount collected for the year 1900, $46,627.54, with the year just ended, $344,166.72.

The Department is not run for the purpose of collecting revenues only and more good is accomplished for the State and her citizens by a proper supervision of the business than by the collection of taxes, but it is interesting to note the increasing collections through the Department since its organization, which are as follows:

Total collections for past fourteen years..$2,429,941 95

The collections for the current year covering the period from January 1 to May 1, 1914, have reached the total amount of $359,339.07.

FINANCIAL STATEMENT.

Moneys collected and turned over to the State Treasurer, during the year 1913, were in the amounts and from various sources as follows:

MISCELLANEOUS COMPANIES (Accident, Health, Liability, Fidelity

and Surety, Automobile and Miscellaneous lines):

Filing annual statements....

$1.160 00