Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1892-04-25

| he total membership of frafernal L,.u.-
| h''iary societies in the State AZ returned Ia
| tiiis department december 81. 1891. va,
2a.i5i l0.tJS of which are member. of
ha'ne societies and 10 .h36 Of societje. of
| other states. This -hov. for the wear a
decrease Of 1Gs in the membership of the
former. and an increase Of 1852 in that of
| the latter
Ibe aggregate amount of certificates in
force Is 50 II $50 an increase of AZ t,f, -
3Sl above the amount in force last wear.
| Ihe amount paid for losses and claim.
wa" -iHi 2tt. 80 against sJlu g3l - for
| 1890.
Commissioner smith says in course Of hi,
remarks on the business principle of life
| insurance, The -o-ealitd benevolent or
charitable theory is disappearing from many
| OF the ffaternai associations, even. insur-
ance IN some form il the object and fratcr-
nifty the incident The sooner. therefore
that all snch associations reduce their
assurance feature. and plans TO business
| principles and practices the sooner aud more
certain are they to achieve success To
this end il seems To me desirable to provide
| for the licensing of agents of these
traiernal societies and thus put them on
cqunl footing with distinctive, life and cas-
|
mess on the assessment plan under the act
of lSs9 fratcrnal organizations now
authorized To work insurance in Maine have
the right To employ paid agents in the pre-
| iiminary organizations of local branches
aud it is extremely difficult to determine lust
where tins work of organization ceases to
| he preliminary, and therefore, rs u matter
of fact. active work of soliciting member
ship may he carried on and work injustice
| to the assessment companies that pay an
| annual license fee Ia the State for company
| and agents and are under the close SUPER
| vision of this department
| The events of the year in other states
| particularly Massachusetts. has demonstra-
| ted IN an emphatic manner the wisdom of
| the fraternal law Of l~s9. and the position
| taken by this department in the matter of
endowment or term payment fraternal nr-
| CARNATIONS. In concluding ne says 1T
| is hoped the societies, calling them
| selves long term endowment fratcrnals.
whose certificates mature in seven years.
and whose operations are sanctioned hv
| Maine laws may find some method of con
| tnuing their business on more equitable and
| sound principles, or in their ingenuity may
| invent some plan TO let their members down
| easily when they join the silent majority
of kindred societies. which event | regard
| As only matter of tense"
| | nder the head of Recommendations the
commission offers some valuable sugge--
tons for minor amendments in the State
insurance laws, retaining tn property and
| securities, better classification of the diff
| tcrent forms, ctc.
\ branch of life insurance known a> In
| iustrj'l Insurance has. within Il few wears
been prncticed by certain life companies in
Maine. 1t consists of collecting small sums
weekly or monthly largely from work
ing classes, the indemnity of which
in ease of death is little more than
| enough, To tlefray burial expenses Com
| plants reach the department quite frequent
| " that the methods pursued by agents are
| Objectionable and oppressive. These com
plants may he without foundation but these
small policy holders have really no remedy
against understandable methods of agents.
Agents. solicitor, and examiners should be
| made personally liable for msrcpresenta
ton and fraudulent practices
The assessment law should be- amended
80 that funds derived from assessments
male to pay death benefits or casualty in
ltmntv may in no event be used for gen
eral expenses The provision in regard to
the reserve or emergency fund should he
amended 80 that if at the end of any year,
that fund i'll the State treasury does not
equal the amount of one assessment upon
all the policy holders. it shall within twelve
month. he brought mp to this standard.
The law allowing fraternai societies until
April st to make returns should he amended
making the limit March lst. The commits
>ioner states that he believes the time has
come for the adoption of Il standard fire