St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-06-23
A BIT OF HISTORY,
Assessment Companies Have a Pc
culiar Mortality of Their Own.


culiar Mortality of Their Own.
If assessment companies are organ
lied on sound business principles and
with correct understanding of the
laws that form life Insurance.; if they
have responsible officers, honest agents
and square work, they become estab-
liShed. There are a few Such~cOmpanieS
now in existence, and whose conduct is
above reproach. But within the last
ten years the fullOWing assessment in
surance companies in Minnesota have
failed and gone out of business:
Zumbrota-The Kaw Life associa-
ton.
Pine 1sland-State Mutual Life and
Aid.
Crookston-Steam Threshers' Mutual.
st. Paul-United Samaritan Beneyo-
lent, United States Beneficial, North
western Legion of Honor, Metropolitan
Mutual Life association, Union Endow-
ment association.
Minneapolis Mutual Accident asso-
citation, Single Mems Endowment,
Home Mutual Benefit association, Min
nesota Mutual Life, American Life as
ISOLATION, Knights of Labor and Mutual
Relief.
Fergus Falls-Minnesota Life Insur-
ance company.
Fifteen assessment life insurance COM
panies failed in Minnesota in ten years!
The GLOBES position is that if these
companies had done square business
with the people, there would have been
no necessity for their failures. Life in
insurance is always in demand,
and the companies that do an
per. Read what Insurance Commits
sioner Shandrew says of the assessment
companies. His authority is good,
for day by day complaints reach
him against them and he is forced to
sit still, unable to remedy them. The
state of Minnesota has no law to pro-
tect its people from insurance frauds or
to make the companies responsible for
their acts. Mr.. Shandrew says:
Assessment companies doing life,
endowment or casualty business, have
all easy time and plain sailing in Min
nesOta. There are nearly 100 such con-
Germs of all kinds doing business here.
Our laws place scarcely any restrictions
upon them. Filing copies of charter,
annual statements and power of attor-
ney entities them to certificate from
the insurance commissioner. No de-
post, no bonds for faithful perform
ance of duty, no financial standing is
required. The cost of admission to do
business in the state is S21 for the first
and S11 for each succeeding year. No
taxes are paid by them. Provided with
the certificate of authority which the
commissioner is compelled to give them,
they exhibit it as an evidence of reli-
ability and as an Endorsement by the
state of their good character, they i'm
pose upon those not posted on insur-
anee matters, sell them insurance that
does not insure, and make promises that
cannot be kept. Legislation is neces-
sary to protect the people from this
class of worthless business
Assessment companies pay no taxes!
Deposit no fixed reserve!
Give no bonds to the state!
No financial standing is required of
them by the state!
Twenty-one dollars, charter, an an
nual statement and power of attorney
makes them legal bodies in the state,
prepared to transact the intricate, re-
sponsible and sacred duties of life in
Surance!
In the last twelve years over 800 as
Sessment life insurance companies have
collapsed in the United States. With
! that record staring them in the face the