New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-10-24


SERVES.
The NatibnAl Insurance Convention r@assen-
bled Underwriters Hail. yesterday at the usual hour
Superintendent Miller In the chair. Mr. Afriend moved
the following resolution, which was appropriately re-
ferred:
Received That the Committee InyesnDts and Assets Instructed
and Marine CS@psniSs GhOSn Be nTsstsd IOci SOteS
Mr. Clark said he desired TO submtA proposition to tho
Convention In respect to the subject under discussion for
the last two OF three dayA In my remarks the other
day. said he, referred to the American Experience
Table not Of sufficient age, in my estmston TO De &c
copied permanent basis for Communication reserve.
intended imputstiOn upon the eminent autnoi VI
that tab but desire to be understood as saying a'
the American insurance table 10 confined 70 tne eAP
enoes Of single company, and TO Limited nnmOef "
years. and that In this view Of the case IL suDeo" ~
the estimation Of many In degree TO the cnae
being hypothetical 1t has seemed to me tns the uo
has now come when we should initiate some measures -
order to enable uA to arrive at permanent Va
mortality, aud desire TO submit 10 the |
proposition to which have referred In the FORM
preamble and resolution: .....
oa The collection and combination Of the actual expenses Of
American Insurance CO@P1Rs S t S sG az Of 0psIaSu
bls euneHt desshe sss @U e. rc IN.
pass oStste os1ls and IaPSSs o.
Life Insurance CcnPss VINO SeoSts data and to compi.
aco@ eItendsi and complies An experience table of NOR
Mr. CIark- take into consideration the fact that the
ratio mortality has doubled America wtnln tne iaSt
5000 policies were terminated by death covering an
amount Of s a1pS ss u . per cent in
the number Of claims s9e SeR al this
proves conciusivey that the rate Of mortality in this
COUNTRY has been undergoing very rapid CHANGE and
OcT %pe Is S connaory Of the st Or old 4c
Hmary's table doubt very much whether q
sccrung in eonneotOn With those which have accrued
9S last q vii tbs
measure at this early stage 1t will be considered ~
the members Of the Convention that the work OF tins
four and possibly i've years, and hence becomes more
Important that It should be special conmisSon -,
The last Convention showed that the Committee on
Valuations had precisely such subject under consid-
Cen smith of KY, as member Of that Committee tee
d nSy aSa S ala eT R the Experience Of
American Companies was enough TO furnish trustW9rny
iata He hoped that the proposition for special Com
The motion was carried, WIN an amendment empow
the day the Chair appointed the following: Messrs
Clarke, MASSACHUSETTS, Kelsey New-JerseX; Caidwe.
Mr. Rowe Of Michigan offered the following resolution:
~ Ta S s.S ne sS q H. SH and
the ocer having charge 81 insurance In the sse
sS : S Sfa au ssl 1psrns notify proper
s ; "' iIS e. in stS
This resolution referred 70 the Committee on Leg
MT Breese from the Committee Of Taxes Fees and
last session to make that part OF the report relating
believe uniformity and full TeprOct between the dn
s S ssIsGrs ys We TsSO% TsD SSa 1S ms w" su
m tbs, off, per oeG'gR p Ss 0 S.I9 D,e.sT ea ds
il. snnuA dedung from zach PrenS4s the amount
should be charged every state except the State in which Il or
This report was laid on the table. After unim
pOrtan business James H. GOOdse OF The Spectator ad
dressed the Convention by permission on the subject or
Interest, substance
SPEECH OF Mr.. GooDsELL.
GENTLEMEN: In bargaining for life insurance the pur-
chaser consus his interests by considering the ransac
ton from two stand-pOints.
/. In regard to the question Of price.
q In regard to the question Of security.
He will REQUIRE his insurance TO a. low priced pos
sbe and he viii require 1t to be certain as possible
deny the authority the right Of the State to interfere
with the question Of price, except 50 far as to the
making Of contracts which nOtoriousy contrary to
PaSS PS S Ss but
fOrmthe duty Of enforcing the performance OF contracts
tracts Is deferred and hence it follows that any State
supervision he necessary Il T. matter OF prime mpoT
of their maturity Therefore the requirement OF
reserve.
period and by ncressng its charges to new members
quality @ not S To rUod the on Ts
old policies when valued by that higher standard. Bot
.ered wnSTt Violation Of the undSmsna principle
Of the mutual system that each policy holder shall occupy
the proporionate share in the companys rewards
and burdens Hence 1t quite important that the state
majority, being new members from voting away to them
selves the Accommodations which have accrued mainly
from the payments Of the minority.
FAlIAcIoUs RATES OF INTEREST.
In to Mr. Barness interest statistics inves
tRate them we shall find that they are practically worth
less He taken average assets as the principal sum-
Sbereas it well that considerable part Of the
NJ ID nOnJnter6Gt
bearing or uninvested items For instance each com
oany must keep trsble bank deposit subject to
sTnenses Mr. Barnes's interest statistics exclude the
interest on deferred premiums Or rather the interest
TTSS premns he puts bot Interest and principal
INTO the asset column and omits the interest part rom
ierest to average assets" means nothing It'll faa-
TSe correct test ia to take companys reserve
IN any given year. and compute the rate Of its interest
rece4ts to that mean reserve This will show how
omnanvs interest experience compares with its inter
at assumption. The reserve Is the amount which must
SolvenCy and it is not often Dos1ibe that the
surplus should draw interest 49,, 49,. ,,,.
may be easily stated have computed these res9ts for
Of the largest @ mes tSasS c0gpSSe WITH
mean reserve Of t16OOoo 900 earned l 9oS inter
~ this Computation with Mr. Baness per centage of in
erest receipts " average assets SHOWS thAt Whe t1o
iGndssthey do at least per cent not more on
their reserve. >,., 49,. N..o. 80
gnOe the assumptions upon WnlCn tuey ueoou
ouire that premiums shall be paid at the same time with
the OF the policy aud that the premiums shan be
mmediately invested 1t follows that an hsbltuA delay
in COLLECTING then investing the premiums must Oc
CASTOR loss which, carried to certain extent, WIN
mpe1l the ability Of the company to fulfill It's engage
ments The penalty Of postponed COLLECTIONS with con-
Seouent deferred Investment OF funds financial loss,
snd ma lOss must be made good We need not adduee
facts 10 prOVe-e assertion viii not be deniedthat to
such an does this practice OF aroy ana
Sosnoaed Investments prevail that In nine ont Of every
ten Companies there ensues annually loss Of interest
amounting from % to 70 per cent Of the sum Whcn the
Iundame ntal assumptions call for
The DUTY OF EVERY LIPB INSURANCE COMPANY.
RHArH dollar which matched from the abyss OF