The weekly North-Carolina standard. [volume] (Raleigh, N.C.) 186?-1869, 1869-08-04
New Dividend system.

Referring to the new system Of apportion-
ing dividends, lately adopted by the Con-
ncciicut Mutual, the Spectator says:
Of the variLus methods Of distributing
surplus, that known us the contribution sys-
TEN has so nearly supplanted the older and
more simple system, known as the percen-
tage plan, that popular favor has been for
ced, prematurely, We think, to pronounce in
favor of Il method which, while excellent in
theory, has this glaring defect, that, al
though devised in order to afford exact
equity, it is generally so applied as to give
merely arbitrary results, based on assumed
not GSeertained, contributions TO surplus
These and other objections, which need not
be considered in this connection, do not.
indeed, show that the contribution system
may not be well for those policy holders
whose payments continue beyond the aver
age duration of policies in this country, but
they suggest the value Of SEINE plan which
shall apportion dividends by clear and
easy method of giving 10 each his proper
share, without permitting an opportunity to
cover up caprici"us or enforced trickery in
making a distribution of surplus subscrve
the purpose OF repairing u weakened re-
serve
In the new dividend system OF the Con-
necticut Mutual, the first intelligent effort
has been made to adjust the theory OF equi-
! table distribution to clear and Il simple
method Of reaching correct results in such a
manner as to hc both satisfactory and intel
e ljgibc to all CLASSES of policy holders. n
: critical examination of the plan has revealed
nothing which Will not bear the closest in
+ veStigation. In theory and in practice it
appears to deserve unqualified condemna-
+ ton, and we regard it, on the whole, as one
of the most valued contributions to lie in
surance which have been made in the last
/ ten or Il dGzen Years, and its adoption at this
! time suitably commentaries the completion
/ OF the first quarter OF century in the pro-
/ greSs OF this great company.
! The plan ON which we have thus been
! forced 10 bestOw our disinterested approval,
takes into account the principal element in
| volyed in the production OF the Invisible
I surplus, namely the amount of interest re-
! ceived in excess of that upon which the
/ companys premiums and reserves arc based.
/ With view, then, of giving insurance at
/ the lowest attainahlc average cost, and 1T
/ the same time doing justice alike to all
/ classes of policy holders, the company makes
\ just allowance for the amount of surplus
interest, which is distributed to each policy
by Il percentage on the reserve, all other
surplus being divided, rs heretofore, by a
percentage on the p,emiums. Thus the
company, actuatel by spirit of the largest
liherality to its policy holders, without &c
cedng from any position which has made
its tower Of strength and influence, has step
ped forward, in the interest of progression
and reform, to enlarge the scope of its grand
operations by afurding all the advantages
of which life insurance is cable. We con-
graduate its officers, its agents and its mem
bers everywhere, on the increased and in
creasing prosperity of the staunch and ster.
ling company whose history, indeed, EN-
bodies the best and most heniicent results
of an intense and unselfsh spirit of mutu,
ality-operating to produce the largest goo(
to the largest humber.