The daily Cairo bulletin. (Cairo, Ill.) 1878-1???, 1882-04-05
LIMITATION INSURANCE.

TIE ONO LEGISLATURE ATTENDING TO THE
ASSESSMENT LIFE SOCIETIES - OFFICIAL
SHOWING VI YEARS BUSINESS.
Especial CIR. Of .be Chicago Inoune)
The assessment or graveyard phase OF
life insurance bids fair To nc conducted un-
der some sort vi restraint IN ono hereafter.
4 bill has recently passed the lower branch
Of the Legislature by the decisive vote nl
Ga to IL, putting the societies that deal IN
tins form OF iusu aucc under the cutlrui vi
the state insurance. department. lhc bill
was very carefully malured, aud MAS The
result OF weeks ol patIent investigation aud
study by the insurance comm ttee. ltiOr'
bids assessment associations issuing pO.s
cies or certificates" Tor over s2,O05 TO any
one person until each society total amour,
of insurance has reached Sl,OOO,OOO; and
no certificate OF over $4,000 shall ever he
allowable Secretaries and trcnsurers Of
the associations are required to give bonds
OF $50 900 for he faithful hauling OF funds
aud the solicitors and agents must also
give bonds IN lesser sums. The a,sucla-
tons are prohibited from doing an cniow-
mcnt or u joint life and accident business,
and must not insure persons over 90 years
old. They are also prohibited from lssu.
ing certificates III favor Of any other per.
sons than the husbands, wivcs, parents, sis
tcrs, brothers or heirs OF tue parties IN.
sured, aud all who are insured must pass u
careful medical examination. The insur.
ance commissioner Is authorized 10 inspect
the books and works OF the associations at
any time, and when he finds The managers
derellct may proceed against them at once.
The public injury wrought 10y the ire
sponsiblc assessment mutual AID" societies
has been so marked in Ohio and Peunsyl.
vania that the bill passed the house easily,
and will probably go through the senate
with few, II any, alterations.
At the last session OF the Legislature u
mild effort ut controlling this phase oi in
surance was made, and q law compelling
the societies to make annual reports TO the
commissioner was passed. Most OF the as
socations complied with the law, though
some cvaded it, and the result is the firss
official exhibit Of mutual AID life lnsur.
ance ever made. A curious exhibit it is,
too.
Number of certificates Cor pollcies) in
force at the end OF the year 1880, 4l,2l6;
number at the end Of 1881, %,
But there were issued during the year
1881 while there were terminated by
death in that year 1853, and by larsing
1886. This shows death rate OF 81 in
every thousand, and also shows that about
one certificate holder out OF three "gets
tired" and lets his INSURANCE lapse. This
is a severe commentary alike upon the med.
ical examinations OF the societies and Of
the members confidence in the stability Of
the associations.
The income and expenditure showing is
still more peculiar The total money re.
ceived during the year WAS $S7S,7S4 10,
Of this amount, $500, 7000i was paid in
the settlement OF death claims, and $685.
0287J for expenses of management The
"Insurancc Mt cost scheme is ,hrs seen to
swallow about AZ per cent Of all collected
for "exppnscs OF management" The
worst managed Of the old line companies
never made quite so bad n showing rs lhnt
The hardest par, Of the exhibit is sc, 10
come The face value of the certificates
on which losses were paid wOs $20OSl95,
and of this less than twenty per cent was
paid in assessments, md OF tho money that
was thus paid only 52 per cent ever reached
the bcnrGciorius. la other wo'ds, tho