Wheeling Sunday register. [volume] (Wheeling, W. Va.) 1882-1934, 1895-12-22

tiers of the Wisconsin Department by
lapse, surrender, death or maturity, to
ascertain if just.fably cancelled
The final valuation is in excess OF thar
found by the Company by the sum OF
$144, 361.00 1t was discovered that there
had been cancelled certain 10 payment
life policies whose owners had ceased
paying premiums and interest on notes.
These policies contain clauses giving
paid up insurance on lapse for as many
tenth parts of original insurance as
there had been complete" annual pre-
miums paid, but the Notes declare the
policy forfeited in case interest should
not be paid thereon.
We are pleased to note the prompt ac-
ton of your Executive Committee in
passing a resolution reinstating the IN
surance on this class of policies as soon
as your attention was called to this mat
ter
1t was likewise found necessary TO in
crease the special reserve on certain
other policies guaranteeing surrender
values in excess of ordinary reserves,
from the sum of S25OO000 charged by
the Company, to S12S,3SS.00, and to
charge for guarantees in excess of per
cent. actuary reserve on certain Tontine
policies, the sum of $22,912.00.
A deduction was made of S63,514.61
from the amount with which the Com
pany charged itself for Death Claims
outstanding, on account Of error and be-
cause after careful investigation it be-
came apparent that many of the cases
contested wer fraudulnt and constitutd
no real liability. Any company long in
existence is bound to accumulate con-
siderable amount of such cases. Some
of these are outlawed, others merely
nominal and practically abandoned or
the parties willing to compromise, and
much less than their face. 1t would be
some had been settled since Dec. 31st for
unfair to compel a company to carry
such cases forever as a liability at their
face or submit to extOrtion to get rid OF
them.
1t was not discovered that the Com
pany had unduly or without sufficient
cause contested any case-in fact, the
amount in litigation on death claims,
compared with the amount paid is sur
prisingly small and the Company singu-
larly successful in defending such suits.
It was found necessary, however, TO add
$1S7. 1927 to the claims outstanding in
process of adjustment for deaths occur
ring in 1894 on which proofs were not
made until some time in 1895. Many OF
these cases were unknown to the Com
pany on December 31st, as proof blanks
are furnished by the agents and not from
the Home Office, but it is necessary TO
take them into consideration in order to
acesrtain the true condition OF the Com
pany at that date, as the parties insured
were actually dead and only formality
interviewed before payment became due.
The Surplus of the Company is di-
vided into Tontine and General Surplus
in the usual way employed by Depart
ments in their annual reports The
practice OF the Company in giving no
tice every year TO its Tontine policy
holders of their annual accommodations
is highly to be commended.
The income and disbursements as rem
dered for 1894 in its sworn statement
was found to be substantially correct
The interest receipts are large, being
5 10 per cent Of gross mean assets.
The ratio of death claims is only about
so per cent. of that expected by the ia
bles upon which its premiums and re-
serve are calculated.
The ratio Of expenses is small and
shows economical management.
An investigation of the business done
in 1895 to August LIST. discloses no I'M
usual event apart from the regular
course. The Commission, however, de-
sires to give expression to their opinion,
applicable alike to all companies, that
the interests of the policy holders die
tates that no more money be carried as
Cash on hand or in banks" than IS nee
essary to meet the current needs of the
Company, and that all funds over and
above these necessities be promptly IN
vested.
The amount of business has increased.
with corresponding increase in Income,
Disbursements, Assets, Liabilities and
Surplus.
A larger relative proportion of in
vestments in City, County, State and
United States bonds has been madeline
Invest in Railroad bonds
The expense chargeable to each item
IS we'll within the limit provided for, ex-
cept in the single case of new business.
wherein the first years commissions
plus the additional expenses incident TO
the first year, after allowing for light
mortality, does not leave enough of the
premium TO cover the necessary reserve
a. the end of the year.
This comment IS not to be accepted as
reflection upon the Company, but is
made TO emphasize theregret of the Com
mission that all fixed premium l!fe COM
panies do not take concerted action in
cutting down this large expense item
found in these companies, rather than
await the time for leg.Aation 10 restric;
the expenditure for new business.
The several Departments OF the Com