The Conservative. (M'connelsville, Ohio) 1866-1871, 1870-06-17
life Insurance.

Last week we gave an illustrated descrlp-
rion of the elegant and substantial lnsur-
.anee Building recently completed by the
Northwestern Mutual Life Insurance Com
Many of Milwaukee. This building, almost
totally constructed of imperishable and
fire-proof material, is typical OF the financial
basis and structure of the institution that
is to occupy it. Such a building Will stand
long after the last policy holders OF the 81
600 in force, shall have passed away.
The Northwestern has recently adopIeu
for it's premium reserves, Cor the amount
necessary to separate and keep invested TO
pay the policies whenever they may pecoAe
cleims) the legal standard in the state OF
Massachusetts, viz: The combined expert
eneg" or ssActuarieS" rate Of mortality GtJouT
ner cent. interest. THIS Is h HIGHEST
sr.NDAR OF RESERVE KNOWN TO n AMERl-
CAN COMPANY and places the Company up
on an impregnable basis OF sondlty ana
security A lower reserve, hal Is assum-
mo q biuber rate of interest for reserves,
gives temporarily alarger apparent surplus
for dividend.
We feel IL our duty to commend this ac-
a tion of the company In the direction OF
, securitv. because there has been growing
: up in this country among lie companies
Y practice of too low reserve tanoard ~
ldnce0 DIV 81 C6SlT6 " ~
noliey holder, we certainly prefer standard
!, Of reserve shall be adopted that Will make
e the payment of our policy absolutely GER
y tain rather than have dividends made Out
of funds that should be held In reserve.
a II has ALWAYS been amystery to us how the
nubIic can be deceived into believing there
4 can he anv security either In life or IRE IN
enrance without cost. This new basis OF
reserve of the Northwestern, as we under
!. stand il. makes no difference in the aggre-
n cate earnings of the policies. 1t SIMPLY
distributes those earnings In dl1erent
h amounts over the life of a policy: -,
IS Tt is the highest evidence OF hnanclai
"a strength and solidity, that the Northwest
10 ern has been able to make the chahge
from a five per cent to a four per cent
81 rocerve. and still has in hand 500, COO to
be divided in January 1871.
TIL Northwestern has the sanction OF tnt
hest authority in the country for this change
in their financial policy. The Western In
slrdnce Reuielc, st. Louis, endorses 1t:
Is. Butthe most commendable feature in the man
m agement of this truly sound and vigorous lnsntu
- ton, we gather from a circular now before US y
rs, sned nv the officers of this Company, in which ~
announced that on the 18th DAY OF Alsrch, Io,e
thew adopted as the standard of their reserve U
HIGHEST rule known to any American company, q
~, wit; The combined experience" rate OF mortant;
AZ foarr per cent. interest, thus placing the Nortl
he western on an impregnable basis OF sohdlty an
We CONGRATULATE the officers of this company,a an
'eo thank them too, for thus taking the tnlI1auVe'
TO this much needed reform. We have long been 50
rts is6ed that the New York rule of reserve, tH p
CIV cent ! is wrong. as a basis of ultimate security, an
% in common with other Insurance journals, in Il
country, we have insisted that the higher rule
ART the rule of absolute safety
to The American Builder says:
awe heartily commend this action of the Mort
ill western, and think we speak the mind OF the 10
~ iority not only of its policy holders, but OF Il
or The Chicago Advance concludes a loI
in @o-t;cIe tins.
Let all onr companies follow the example of Il
Northwestern and we shall never be compelled
submit to the disgrace which our Engnsn Lrlen
ion We COPY the annexed from the Ohlca
lust Tribune:
- Is the policy holders in the Northwestern Nut
= = Life Insurance Company have reason to De apul
i'AS antly satisfied with the wise course pursued Oy
ace, oficers of the company during the past year, 3
use, fhe prosperity attained in the past and assured
nc q fbe future, the assets amount TO nearly seN
and a Quarter million dollars, and the company
men adonted a A-per cent reserve, giving an impreg
p IL bic security for the payment or all poncles as =
old. become claims. This is the highest standard OF
icb serve known to any American company, De
ICn' tbe ieosI Standard in Massachusetts,, and recC
z III mended by the most eminent actuarles. Inc :
ieli- plus ali going to the tpolicy-holders tthe comp
con- being purely mutuaD the dlmlnunon Oh Si' Sn
H AM
anu really larger, and the policy-holders, who UNI
stand the merits Of the case. have the sansiaGi
of knowing that they are absolutely safe-Wh
Should be the leading consideration with insur'
T in The Hon. Elizur Wright, in a recent
4 is ticle, thus speaks on this important topl
HBut a vast company of co-insurers, spread q
i1'oi a continent and binding together the present.
mas future ages, should not be content with . pare
ex- fciency of reserve. 1t should keep a barrier OF
IN as serve between it and future insolvency, ever on
e. increase and as imprGgnable as Gibralter.
nN0 most satisfactory working viii be obtained
standard of reserve which will not only Keep
been old business lChouy G6ous the necessity Of GcqH1
each new, but viii makelt ior tne InsearsIanca 20 anv
70 Is company that can be presented"
70 IN The Northeastern entered upon the J
9 IN 1870 with the most fattering prospects,
raiiy with assets at the present dateo OF S7,25O.'
tne Nothing in the history of the states OF
y VI northwest has so nearly paralleied 4
material growth, as this great financial
gooo cess-the Northwestern Mutual Life
y guranee Company.