Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-01-31


The number and mode of termination Of member
ship in the Mutual Reserve Fund Life Association
for the past twelve months harmonzes with the
experience of the various old system life insur-
ance companies of America, showing that the law
of terminations by death is scarcely rigid or
certain than the law of Examinations from other
causes. There always will be certain percentage
Of the insured who will fail to continue their in
surance through the first year. There will be
another percentage to whom the object of life in
surance will no longer exist and another percent
age who become unable to make payment of their
premiums If they desired. This is illustrated by
the fact that the old system companies issued in
1890 $780, I'LL cS3 of insurance. yet their increase in
the volume of business in force at the end OF the
year was but Si37 92S, 900, showing disappearance
from their books of an amount equal to more than
half the insurance written for the year. or
nearly $500, 900, 000 while their death claims for
the period were but q fraction greater
than 20 per cent of their terminations and the busi
ness of the management of large life insurance
company is largely occupied in supplying freshly
examined applicants to take the place of those of
the older members who shall have terminated
their membership for the various other causes
than by death, but 1t should be stated that such
Examinations not an unmixed evil, for as these
older members pass off the books of the company
the new members freshly from the hands of the
medical examiners take their places. and thus
constant change is occurring. which doubt ex-
plains the fact that the mortality of life insurance
company forty or fifty years of age is scarcely
greater than the mortality of the same company in
the tenth fifteenth year of its existence. For
instance, the mortality of the New York life in its
seventh and tenth year of its existence so per
cent. greater than was the mortality of the same
company in the forty-eighth year of its existence.
OFFICIAL EXAMINATIONS.
Outside and beyond the six examinations made
nv the Auditors of the Association during the past
twelve months the results thereof having been fur
nished to the members with their bi-monthly
Mortuary Calls, am pleased in being able to report
that early in the summer of 1891 Hon. A. l.. Carey
Commissioner of Insurance of the State of North
Dakota and Hon. William G. Hayden, Actuary of
that department. appeared at the office of the Asso-
ciation and notified the President Of their intention
to proceed with official examination of the
affairs of the Mutual Reserve Fund Life Associa-
tion Being clothed with the authority of law, the
books at once placed at their disposal and the
heads of the various departments were made sub
ect to their orders After a thorough investigation
of all the various departments of the Association
Including the Death Claim. Investment, and Med-
cal Departments, and upon the completion of their
work they handed to the President and officers of
the Association a report of the results OF theiI
findings.
The Commissioner report concludes as follows
and in these words are embodied the views OF both
officers:
AS whole I wish to state that the busines. of
your association has been conducted upon strict
business principles, with extreme iberality and
promPtness in paving every YER honest t, death @ claim
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"
am so well satisfied with the honesty and ability
of the management and excellent financial condi-
ton of the association that shall be pleased to
ton to the citizens of the State of North Dakota.
Respectfully yours,
Commissioner OF Insurance.