During the 1906 legislative session , Beckham urged investigation and prosecution of corrupt insurance companies , following the lead of New York attorney Charles Evans Hughes . In particular , he recommended reducing the practice of deferred dividends , which allowed the insurance companies to keep large stores of cash on @-@ hand for illegal purposes . He further advocated that insurance companies doing business in the state be required to invest a certain percentage of their earnings in Kentucky , bolstering the its economy and providing policyholders some protection against fraud .