The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-05-29
TEE INSURANCE CONGRESS-.
Report of the Committee on Assets
and Investments.
The Delegates in Favor Of the Abolition Of De-
posts Outside Of States in Which
Companies Are Chartered.


The following very important report on assets and
liabilities OF insurance companies has been pro-
posed by the committee for the consideration OF the
convention to-day. Mr.. Paine. OF Maine, chairman
or the committee does not wish 1t to be viewed as
the decision OF the Convention, as that body have
not yet acted upon 1t. The Convention Will likely
conclude It's labors on Thursday or Friday evening,
land 1t is hoped by them that they will succeed In
settling CONNECTING interests between the people and
the companies. AS far as can be judged from con.
yersatons with delegates 1t Is found that nearly all
are In favor OF abolishing the law which compels
companies to deposit securities in the States where
they do business other than the from which they
receive their charter, thus giving them control OF
funds that the law virtually locks up and conse-
quentiy cripples the companies The delegates
maintain that with deposit OF 100000 In the In
surance Bureau OF rne state where they are char
tered and rigid scrutiny OF all companies affairs
by State Superintendent the policy holders inter-
Psts Will be fully guarded
INvRsrMENTs.
IN defining the assets OF insurance companies to be In
cuded in their reports to the Insurance Departments there
n Office or ~ banks ana trust companess United State;
Ind other public copOraons including banks and others
P1 and real and
banned can be taken In all such cases OF security to have
cd
1hs ma. &c
ood Judgment OF those to whom the companies SHALL for
pn' time BENG commit the a as',sss' trust
ne o. nan aVa aoonsn
imemc checks and accommodations the COMMITTEES believe
y
al wsrh ~
An the notes or ledger charge. Of the insured.
4usgesed believed the Legislatures the several
.nis. and Justice sSs policy holder. other state: al
OFFICE FURNITURE AND TIxruREs, BLANKS, STA
nd other article. purchased Tor the companys use noud
Ing s taken Dy s Pan O W own
e.ss. They are simply disbursements made in the trans
Ae'i0n OF .As c0%panys SSsn sos.,,s,ons.
SS another for debts
Inple plan and somewhat inseniousy adopted by weak
PREMIUM NOTES AND LOANS ON LIFE poIloIRs
n force and interest Ssng portion Of all premiums due for
OF the policy valuation. and thus issued full aud vaua
70 IN cs Of q h
ss on which they are issued the security being ample and
Life premiums in process of collection" including those
disposed q as Nanos
agents coee:lon and whsS on the
properly he book. 81 the a come
Pnny as Items OF enarEe or debit against the aeent
hs to be remembered, however, that ihs agent
not ssi
lection re the ne office the The true
required to make It's the Department
Ss tai Ss rae
state Of the business in the asns hands at the end of the
the AND s oia s
n
e h mn Ia: s ana An this can 30 readily done
business IN this particular De reported This course
ce then Which
old
$ Will a9S q IN that Easily
hon. new element truth consequent strength viii
sen ss
financial and business character OF the company be
'ia'' made 's known '0 sss sas1 rnssryns .
ne a 3! ss0ss
to b such premiums as are 70 be paid a. the home oce
,'S ss $ r. s?us is' y!
Eas
as much part q To- tine term o. Sred hs a. any other
category Of premiums no, yet IL on The contrary
s a e y s &:
s ss a ss o. %
heneyer the payment on such ease made y !: r.n.ac
the other sSs receipt: and income Of
20 MI
the o sns Hds Under n % for
"DEFERRED PREMrUM6"
hre be disposed Of very much the same way
E.eady indicated above These are unpaid gTsm!um. due
great given Ssn; part of the contract and of course
A. Tie company charged in the valuation with .he
ss.s Ss ;ss e
snd o the e hs
Sass Of sSe policy or Liability Of company rsssonaSy
s we've e u
ss &c a s pis u
budensome extent substitute bringing 70 substantially
Ss G s % Ss p a
been thereby increased but no farther The premium de-
) .'ioadlnsS ~ espsnses which have no. entered
'as Is %ty o.
course from the whole and the balance Of
$
Of on e sae er hs 20 s
rded such any other light than reduce the apparent
re- FoS iSs acne WIN N:
thus 1seSensdve per cent the aetaa amount Of
deferred policies legally in force for hs
st The debit q overcaargo in he Of value liability but
!. THE EXACT STARE OF TaE ooMPASiEs' AriAIns
for the ya n o @ Which the are
more ess deferred But a.. comes more properly
nohing further is to be added to this suggestion The follow
nng compendium presents
A VIEW OF CONCLUSIONS
arrived al by the committee defining the assets and nvest
ments OF insurance companies -
Fjrst-The various items Of cash, stocks bonds, real
estate loans on mortgage collateral coming within the
general description OF the first paragraph Of this report
agents. hands Of 1 % ss;O,n
a. see
70 that date, before ma king the annual statement
Thi Premium notes loans life policies In force
on interest not exceeding the amount Ok ne casn
charged against the companies In their liability or the
Fc. ih~Deferred premiums on life policies, legally 10
Horce the extent OF sevenyHve per cent OF their lu
amount for purpose cancenS an equal amount
pr the liability with the company charged In the pocy
valuation. ,, - -.
FVtIBut leasehod estates for the companies own occu
pancy. commutcd commissions, loans secured by names
banks stationery and other articles purchased for me com
panes transaction OF their business are al 70 ne
rejected assets value In judging Of the true status
Of the companies,
A'''''' ALBERT W. PAINE, Chairman
HEAVY VERDICT AGAINST TIE ERIE RAILROAD