The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1893-03-26
ESTIMATE AND RESULT.
Some Comparisons Between a West
ern and an Eastern Life
Insurance Co.
Cases In Which the Insured Re-
ceived More Than He Was
Promised.
How the Lisc Insurance Comm Issjoner
OF Now York Commented on
COmpany's Methods.

THE INDEPENDENT contained on Friday
morning a communication signed by II.
Sharpe, manager Of the New Yo!k Life In
surance company, in which two estimates
made by myself. on a twenty payment
life twenty-year tontiue vary III nine
months 81. 037.45. Since 1872 the New York
Life has cut down its official estimates of
surplus at least four times, the esti-
mates now being about one-half less than
twenty years ago. The officers Of the
Northwestern have always refused to make
on estimate of the surplus on tontine or
semi-tontine policies until como OF these
policies had matured 10 as to have a solid
foundation on which to base an estimate.
The estimates used by myself and . great
many Of the agents of this company from
1884 to the early part of 1892. were based
on an estimste book which WAS gotten up
by a general agent who had twenty-six
years experience in the life insurance bust
ness, by the name of Edwin j. Smith. OF
Boston. These estimates were based upon
dividends as paid by tho Northwestern, with
five and one-half per cent compound inter-
est on actuary's table of mortuary and a
lapse probability corresponding with the
different policies of the tontine period. As
this company did not begin issuing tontine
policies until the latter part of 1881, their
first policy did not mature until the latter
part of 1891, and their second class Of pol
icies began maturing in 1892. After quite a
large number of these policies had matured
the company got up an official estimate
book based on tho actual experience of
their ten-year tontine policies. This ex-
-1ns~ Ahn 49, lsH~en-k ~as-c~AA. -~.A - H.
myself on the $1,000 policy age 70, on
tine. As before stated. only the ten year
tontine policies have as yet matured, and I
will hero give the results of these policies
as compared with the estimates used by the
agents of this company prior to the early
part Of 1892.
In 1882 Stevenson Burke. OF Cleveland.
o.. president of the Toledo. Ohio q Cen
trail railway, insured at the age of 81 in this
company for $40. 600, on the ordinary life
ten year tontine. His surplus RS paid by
this company in 1892 amounted to 50, O86. ID;
the estimates taken from the Smith esti-
mated surplus at $2.904.20 actual results
over agents estimate 1851 .93.
Charles b. Kountz. banker, of Denver,
COL. at the age Of SO, in 1882, received a
policy in this company for $2O.0 OO. on the ten
plus offered Mr.. Kountz in 1899 vas 49,
494. 81, the agents estimate under the
Smith estimates was $3,377; actual results
over agents estimate, $117.91.
Jno. Y. Farwell. OF Chicago, at the age of
tho ten payment life ten-year tontine plan.
Ihe surplus under Mr.. Farwelrs policy
amounted to $2,O1s.65. Tho agents esti-
mate as given in the Smith estimate book
vas $1,834. So; actual results paid over
agents estimate $183.70
n Cho,loo ~ Dnu-o. 0al - 80.
of:6O in 1882 insured for $1,000 in this COM
pany on the ordinary life ten-year tontine
plan. Thu cash surplus paid Mr.. Charles
in 1892 on this policy was 81. $40. %; the
agents estimated surplus as taken from the
Smith estimate book gives the sur
Charles over agents estimate was $s792.49
Jno. A. Thatcher, OF Pueblo. Col,
in 1882 insured for $4,000 at the
age of 46 on the ten payment
life, ten-year tontine plan. The sur
plus paid Mr.. Thatcher by this company in
from the Smith estimate book was g.
AGO; actual results paid MI. Thatcher over
agents estimate $181.68.
This ia ample evidence that the estimates
as used by the agents of this company
prior to the time the company gave us an
the estimates are being realized.
Of course the fifteen and twenty year ton
tine policies have not matured in the
Northwestern yet. and the companv's official
estimates are considerably lower than the
Smith estimate. but that ia no reason the
former estimates will not be fully realized.
Can Mr.. Sharpe or any other ag ent of the
New York Life show ops single instance
where actual results on a New York Life
policy have ever reached 70 per cent of the
amount of surplus as estimated by the Off
cial estimate books of that company at the
time the policy was written? II he or they
can, will he produce them? Can he deny
the figures given IN my article in The INDIE
PENDENT for the last several days entitled
..Estimates Aqainat Resnlta.n which ara as