Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-12-03
REPORT OF EXAMINATION
OF the Affairs Of the Bay State Beneficiary
Association.

The affairs of the Bay State Beneficiary
Association Of Boston, were recently
examined by the insurance commissioner
of Mas achusotts, who was at his invita-
ton Joined in making the examination by
representatives of the insurance depart-
ments of Maine, Connecticut, Rhode Is.
land, Vermont and Ohio.
This association is doing business in
Maine and recently rc-insured the risks of
the Provident Aid Society of Portland
and the Maine Mutual Life Insurance Co.
of Biddeford.
The report of the examination has just
been made public The time covered by
| it was from Dec. 81 1894 to Oct. 10,
1895. The report states:
"The receipts from mortuary assess
ments. as shown by the cash book, during
| the year to Oct. Is, were S541, 1907, TO
which should be added s4sS5.76 received
ON account of interest, making total NOR
| tuary receipts s546, $685. SO.
1.-The certificates in force on Oct 10
| numbered IS, 1922 and amount of insurance
in force SAT, 1914, 300, an increase since
| Jan. l, 1895, Of 1880 certificates, repre-
| senting 81, 7S3, 125 of insurance.
Death and disability claims, paid Jan.
l to Oct. Is, 1895, $3.50, 1888 80. To this
should be added SAT, 741.6 claims com
promised. In nearly every one of these
latter the adjustment was based upon an
| alleged Misrepresentation in the applica-
ton"
The total of the expense account receipts
is 500, 81. Oh, and the total of expense &C
count expenditures is 1913, 1912
The total of assets is 1921, 675.61; of
accrued liabilities, $Sl 900; of contingent
liabilities, $2l1, 900; of contingent assets,
$3.50, 600.
We quote from the report:
OF the assets of the company, about
500, 900 only is available for the payment
of claims the balance being required I'M
der the statute as an emergency fund.
According to its sworn report, Jan. l,
the company had contingent liabilities of
ALI kinds to the amount of 1874, 40, and
assets Of 1888 672. IL, an apparent deficit,
not estimating the reduction sure to be
made on a considerable portion of these
claims, of SO, 742 So.
The company has since paid on NOR
tuary account S43 1894 06 above receipts,
but there remains deficiency between as
sets and contingent mortuary liabilities
of all kinds of $40, S2l97.
1t should be stated that while the in
come of the company from assessments for
mortuary purposes during the year 1894
was 1899, go 81, tho income from the
same source for the present year to Oct.
Is was S541, 1907 and this includes only
about third of year under the in
ere lscd rates.
The claims incurred during 1894 were
S622, 500. The claims incurred during the
present year to Oct Is were 1857 $50. -,
The commissioners havs carefully
counted and verified the assets of the com
pany and made close Investigation into
the claims which are included in liabili-
tics.
The amount of the bi-monthly calls has
recently been Increased, but, as indicated
by the figures not to a sufficient extent to
meet the current liabilities of the company
and the accumulated losses.
The only basis Of stability to insu1an &c
Of this class is the payment as provided by
the statute from time to time of a suil-
Client amount to meet the current NOR
tuary demands. 1t Is for the interest of
every certificate holder that the already &C
crued liabilities should be promptly met
and sufficient sum paid upon each call
to meet with promptness every adjudicatcd
claim.
In order that the already deficiency in
the nortuary account may be supplied and
the hereafter liability Of the company be
promptly met, the commissioners urge
upon the officers of the company the is
suance immediately of an extra call.