The Leader Enterprise

Atlanta, Ga., Aug. 17.—Governor Slaton has signed the new insurance bill and it has become a law, and henceforth life insurance companies operating in Georgia may go ahead and build up their business without being harassed by every malevolent person who for some trumped-up reason might choose to bring receivership proceedings against them.

For years the hardest factor a home company has had to combat was trivial lawsuits. Any dissatisfied person, or agent of some unscrupulous hold-up expert might go to the courts and ask that a receivership be appointed for the company. No matter how trivial the charges, the company would be dragged into the courts, a great deal of publicity would result, and the standing of the company would be injured exceedingly while the case was pending, often for many months, even though it was declared solvent in the end.

Under the new law any person desiring to bring receivership proceedings must first lay his cause before a commission composed of the governor, the attorney general and the insurance commissioner.

If they find his case has merit, they will issue a certificate to that effect and he may go to the courts armed with excellent evidence. If the commission finds the company apparently solvent and the charges not well grounded, the complainant may still have recourse to the courts but in that case the defendant company will have a certificate in its favor with which to combat the suit. It is expected that in future the complainant will have his facts straight before he goes to court and asks a receiver.