Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-08-24
INSURANCE BUSINESS.
Of the State of Pennsylvania, as
Shown in the Annual Report of
THE INSURANCE COMMISSIONER.
Great Increase in the Number of Policies
Written the Past fear.
LESSONS TAUGHT BY TIE STATISTICS
ESPECIAL TELEGRAM TO THE pIsrArcH.i

part of the sixteenth annual report OF the
Insurance Commissioner of Pennsylvania,
just issued, contains the reports Of COM
panies of this State, all located in Philadel-
phia, 80 life companies of other States and
6 accident companies. 1t also contains the
reports of IA assessment life companies and
4 assessment accident companies of this
State and 20 assessment life and assess
ment accident companies of other States.
The total paid for insurance in Pennsylva-
mia in 1888 was $21, ,94S. .689 A, of which $12,-
334 ,708 98 were premium receipts OF life
companies. The Pennsylvania companies
received from business in this State 8, $685.
593 16 and companies of other States 30, 1885,
115 so. The premium receipts of Pennsyl-
vania stock. fire and marine companies were
s3,052, 1856 70. those of Pennsylvania mutual
fire companies 1914, III 81 and of other
States 81, ,5S7, ,631 20. The aggregate paid
for insurance (s21, ,94S, 6s9 ~ is $1.7ss,-
070 81 greater than the outlay for insurance
in 1887, of which 81. 1853, 1913 % were received
by companies of other States and $315, ,45s 4o
by Pennsylvania companies. The acclqent
and casualty companies OF other States did
an increased business of $32, ,591 40, mailing
the aggregate in 1888 S272, ,159 80.
A GREAT INCREASE.
The companies of this State issued b,97S
policies last year, insuring $14, 286, 81A on
lives of citizens of this State, an increase OF
insurance of s., 533, ,175. In addition, Sc, 233
industrial policies, insuring $3, ,S36, ga were
issued Companies of other states issued
IA ,S12 policies in this State, insuring S46,-
500, ,756, and 238, $40 industrial policies, in
suring SIS, ,514, I'll, making an aggregate BY
all companies of 2S7, ,563 policies, insuring
$50, ,236, ,554.
The total losses paid by life companies in
this State in 1888 were s., 91S, ,04e, of which
home companies paid $685., ,865. Is. and COM
panies of other States, 81, ,984 ,1S1.
The Insurance in force at the close of the
year 1888 upon lives of residents of Pennsyl-
vania, including industrial insurance of
small amounts, aggregates 655, 450 policies,
insuring 1866, AL, 545, of which 35, 200 poll
cies, insuring ST. ,409, 1855, were in companies
OF this State, and 620, ,250 policies, insuring
S294, OBS, ,1So, in companies of other States.
ACCIDENT BUSINESS.
The accident companies held in force in
this State at the close of the year 8, 485
nolicies, insuring $23, ,095, 40; the Pennsyl-
vania life companies 81, ,979 policies, insur-
ing S138, ,669, 1856, against 1859 policies,
insuring S124, 233, ,034. at the close of the
year 1887. The same companies had total
net premium income of S5, AL, 987 "a in
1888, against "a, 726, ,574 55 in 1887, and
total income from all sources of 81, 294,-
COG in 1888, against total income of Sc, $685.
519 SO in 1887. Their entire expenditures
in 1888 were 81, ,62S, ,527 IL, of which sum
So, ,O47, ,291 81 were paid to policy holders.
In 1887 their expenditures were IS, 789,-
hold
251 60.
The entire income of the assessment life
companies of this State was S97S, ,076 SS and
expenditures S910, 1859 66. OF the sums ex-
pended $685., 5O7 "a, or 65 per cent of the
entire income, was used in the payment of
death claims, and $274, ,661 50, or % per cent
of the income, went to expenses OF manage
ment. The total number of members at the
beginning of the year in the companies of
this State was Is, 400 and at its close q, ,109.
OTHER ASSESSMENT COMPANIES.
The assessment life companies of other
States, licensed in this State and reporting
to the Insurance Department, show in 1888
a total income of SIC, GAS, 800 81 and ex-
penditures amounting to So, 581, ,319 5S. OF
their expenditures about 68 per cent of the
income went to the payment of losses and q
per cent to general expenses of manage
ment.
The II assessment accident companies re-
porting TO the department show in 1888
total income of $1,712,075 81, and expendi-
lures, 81, ,661 ,0S0 81. Sixty per cent of the
income was used for expenses and 80 per
cent in payment OF losses.
In referring to defeated legislation "de-
fning the power and assigning the legiti-
mate field of foperation of beneficial associa-
tions beneath the rank of assessment life
companies" the Insurance Commissioner
says: although this bill by its terms did
through the lodge system, it was no sooner
made public than a number of these favored
orders were in full cry against it. Its pro-
visions were mlsrepresented, and the members
of the orders, through their numerous
lodges, induced to petition the Legislature
against its passage.
THIS POTENT INFLUENCE
was reinforced by the beneficial associations
already under the ban of the law, bat who
expected to obtain better terms than this
measure proposed to accord them. OF
course the bill had no chance against this
combined opposition. Perhaps, upon re-
Election, the active opponents of the bill
may conclude that their victory is a
barren one. The orders had not the
shadow of a reason for their opposition, as
they were not affected. The associations
directly affected are in worse plight than
ever. The bill defined and contracted the
powers which the court decided they could
not exercise, and now they are in peril of
immediate dissolution, or at the best of be-
ing confined to such powers as the court
may in its discretion determine"
Speaking of the bill for the incorporation
of friendly societies, vetoed BY the Govern
or, the Insurance Commissioner says it
twas Questionable because it afforded ev-
cry facility for the creation of small insur-
ance companies with general powers and in
adequate or sham capital and failed to pro-
tect the interest of the insured"
THE ASSESSMENT PIONEER.
Insurance Commissioner Foster devotes
space to comments on the busi-
ness of the United Brethren Mutual Aid
Society, of which he says: 'It was the pio-
neer OF this State in the assessment life in
surance business, and was supposed from
its organization to be under the |
special guardianship of the re-
ligious denomination whose name |
it bears Its rapid growth and apparent |
success promoted the organization of many |
imitators and rivals. and it may be said to |
have stimulated the craze for this kind Of |
which reached its climax in the |
graveyard business. He then |
shows that the average insurance of the So
cicty diminished from S21, ,241, 500, in 1873,
TO 50, 894, ,250 in 1888, while the cost per |
81, 900 increased from $40 so to $43 55.
''This record" says the Insurance Com |
missioner, ''tells its own story of constantly |
membership and constantly in |
,reasing cost. Any comment on the lesson |
L teaches would be superfuous. The ag.
,reoate amount of assessments renuired 70