The advocate., 1894-05-16


on December 81, 1898, there was not q dollar OF
principal or interest due and unpaid
This statement alone shows the h1ghest
skill and fidelity in managing that branch OF
the compRny's business.
recommend the careful examination OF the
reports to me Of MI. Hite and Messrs. Good x
Follows.
In conclusion let me add that in undertak.
ing this examination officially, as superln-
teRdent Of the insurance department. OF this
state, have considered It my function to be
abGolut0ly impartial and, at the same time,
judicial in my findings, and as public Official
have aimed thus to make both the exam1nA-
tion and my conclusions, always having be-
fore me the obligations OF my otflce and the
oath TO which / subscribed; and feel certain
that have absolutely done my duty, both to
the public and to the company, without fear,
favor or prejudice.
Superintendent OF Insurance.
"D. R. H1TE, INSURANCE LAW.
ATTORNEY AT LAW.
Topeka, KAN, May 5, 1894.
"Hon. s. H. Snider, Superintendent Of Insurance,
Topeka, Kan:
GsIR-Under your direction commenced an
examination OF the Kansas Mutual Life Asso-
eco -eiAtion, OF Topeka. Kan, on the 7eh day OF
April, 1894 l herewith submit my report OF
findings and conclusions, after an exhaustive
and searching examination Of every certif-
pany since its organization In 1882 I also
carefully examined the securities Of the COM
pany and the details Of Its business, verifying
the mathematical computations Of its re-
serve, etc. fnd as follows:
NJha company under the certificate Of auth
OFlty issued by your department., transacts
life insurance business under the provisions
Of the old line life insurance laws Of Kansas,
enacted in 1871, to regulate the business OF
life insurance.
SThe provisions Of this act require that life
companies Of this state must deposit with the
treasurer Of the state OF Kansas the sum OF
one hundred thousand dollars capital / find
the Kansas Mutual Life has on deposit with
the state treasurer approved securities In
compliance with the provision above referred
to 10 the amount Of one hundred thousand
dollars. This amount being derived from the
surplus funds OF the company, growing OUT OF
the contributions Of it's members, and used
for this purpose by vote OF the members OF
the corporation.
"The provisions Of the law above referred to
also require the deposit by such life COM
pantes OF an amount equal to the net present
value OF all policies outstanding estimated
according to the American Experience Tables
Of Mortality, and four and one-haf per cent
interest.
@I find that the Kansas Mutual Life has 80
deposited an amount equal to the net present
value Of all outstanding policies upon which
premiums have been paid. The aggregate de-
pcsit on January l, 1894, amounting to $780,
O95O0
II find that the company issues the following
forms OF policies: Ordinary life, limited pay
ment life, endowment and renewable term.
"All Of these contracts are carefully drawn
upon the forms approved and used by the
standard life insurance companies.
"The rate Of premium being invariably esti-
mated upon the Actuaries or Combined Ex-
perience Table and four per cent. interest,
more stringent rule In favor Of the policy
holder than the American table and four and
One-halR per cent. The loaning Of the net
premium for expense is reasonable and the
officers Of the company have constantly KepI
the expense Of management and procuring OF
new business within the amount derived from
the loaning
II carefully examined the computations Of
the actuary Of the company In the estimate OF
the reserve upon all Of the policy contracts In
force, and find his calculations absolutely cor
ain this connection think the work Of Mr.;
Blakely, the Actuary OF the company, entitled
TO the highest praise, both for extreme &C.
curacy In computation and conservatism In
drafting the policy contracts.
II find that the company tB placing In some
Of its policies guaranteed caSn values tSs asSI 0
tracts and rigidly applied the tables to them
for the purpose Of determining the ability OF
the company to fulfill their terms, The result
OF my Investigation along this line s9tIsnes
me that the company can undoubtedly carry
out the agreement made without calling upon
funds other than the contributions OF the
member holding such policy, even IL the pres
emit death rate Of the company should be
enormously increased.
81 find the renewable term policies issued
by the company 10 be in effect the same as
those used by the ProVident Savings Life, OF
New York, company managed oy me as
tinguished Sheppard Homans, probably the
most thorough life insurance man In this
country.
"The reserve upon these policies Is carefully
computed according TO the same stanaard
tables as are applied TO other forms OF policies
issued by the company.
"These contracts are issued In the several
approved forms known as yearly renewable
term, ten and twenty year renewable term,
etc
aAs these policies expire at the intervals for
which rates are made, the reserve 70 m9en en