INSURANCE: New Scandal in Texas

After a series of scandals in 1954, Texas finally got fed up with the worst insurance regulations in the nation, passed 23 new laws to plug loopholes. Last week, for all its trouble, Texas was rocked by the worst scandal in the state's checkered insurance history.

One of its biggest insurance companies, U.S. (for "United Services") Trust & Guaranty, was padlocked by the courts, and 128,000 investors and policy holders, mostly in low-income groups, were faced with a loss of more than $5,000,000. Said Texas Insurance Commission Chairman Garland F. Smith: "I don't know any bankruptcy in the history of...

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