St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1892-02-01
of
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r Making total saving to our members by
reduction of premiums of more than thirty
millions of dollars.
LAPsING
The number and mode of termination of
membership in the Mutual Reserve Fund
Life Association for the past twelve months
harmonizes with the experience of the vari-
Gus old system life insurance comDanies of
America showing that the law of termina-
lions by death is scarcely more rigid or Ger
tain than the law of Examinations from other
causes. There always will be n certain per-
centage of the insured who will fail TO con
time their Insurance through the first wear
There will be another percentage to whom
the object of life insurance will no
longer exist, and another percentage
who become unable TO make pavment Of
their premiums if they desired This is illus
trated by the fact that the old system com
panies issued in 1890 $3.50 III, 2S3 of insurance
yet their increase in the volume of business
in force at the emu of the year was but SAY. :
9@S,00O, showing disappearance from their
books OF an amount equal to more than half
the insurance written tor the wear or nearly
So0J,o0o,000, while their death claims for the
same period were but fraction greater than
To per cent. OF their examinations, and the
business OF the management of q large fife
insurance company is largely occupied in
supplying, freshly examined applicants to
take the place of those of the older mem
bers who shall have terminated their
membership for the various other causes
than by death. but 1t should he stated that
such examinations are not an unmiXed evil
Ior as these older members pass off the books
OF the Company the new members freshly
from the hands OF the medical examiners
lake their places, and thus a constant change
Is occurring, which no doubt explains the
fact that the mortality of life insurance
company forty or fifty years of age is scarcely
greater than the mortality of the same COM
pany in the tenth or fifteenth year of its ex-
lstence. For instance. the mortality of the
New York Life in the seventh and tenth
II a YjS ar1-oc
than was the mortality OF the same company
i'll the forty eighth year of its existence.
OFFICIAL EXAMINATIONS
Outside and beyond the six examinations
made by the Auditors of the Association dur
ing the past twelve months, the results thereof
having been furnished to the members with
their bi-mOnthiy Mortuary Calls, lam pleased
in being able to report that early in the sum
of Insurance of the State of North Dakota
and Hon, William G. Hayden, Actuary of
that department., appeared at the office of the
Association and notified the President of
+ animation OF the affairs of the Mutual Re-
serve Fund Life Association. Being clothed
with the authority OF law. the books
were at once placed at their disposal
and the heads of the various departments
were made subject to their orders After a
thorough investigation of all the various de-
partments of the Association, including the
Death Claim, Investment and Medical De-
dlQ upOu Tie Cpu Oh Elelr
work they handed to the President and Off
GERS of the Association report of the results
of their findings.
The Commissioners report concludes as
follows, and i'll these words are embodied
the views of both officers:
AS whole l wish to state that the bust
ness Of your association has been conducted
upon strict business principles, with ex-
treme liberality and promptness in paying
every honest death claim, and simply quote
from the report of my actuary. which report
/ most heartily endorse, that the accounts
of the association are SO well arranged and
its system of checking from one department
to another so thorough that any errors can
be easily detected"
l am so well satisfied with the honesty and
ability of the management and excellent
financial condition of the association that
/ shall be pleased to recommend the Mutual
Reserve Fund Life Association to the citi-
zens of the State of North Dakota. Respect
Z fully yours, A. l.. CAREY,
+ (Signed) Commissioner of Insurance.