St. Paul daily globe., 1896-04-24

and those in the field have little to. do on
account of the depression in realty.
The number of assessment companies has
increased to 102 the following having been
admitted since the last report: Ancient Or
der Of Renders, Lincoln Life and Accident,
Omaha Life Association, Western knights
Protective Association, all of Minneapolis;
Minnehaha Mutual Life Mutual Life and
Royal Mutual Life of st. Paul. The life
companies of other states admitted are
Catholic Order of Foresters, Chicago, ILL.,;
Federal Life Association, Davenport, To-;
FRANKLIN Life Association, Springfield, ILL.,;
Independent Order of Foresters of Illinois
Chicago; International Fraternal Alliance,
Baltimore; Iowa Masons' Benevolent Asso-
citation, Oskaloosa, To-; Massachusetts, Ma
tional Life Association Westfield, Mass
merchants Life Association, st. Louis, Mo.
Ihree Minnesota casualty companies have
been admitted: The Franklin Benefit Asso-
clation, of Duluth; the Northwestern Steam
Boiler insurance Company, of st. Paul, and
the universal Mutual Accident Insurance
company OF Duluth. The Iowa Mutual Ac-
cident Insurance Company of Nora Springs,
To-, was also admitted.
IN all twenty assessment companies were
aoIhltted TO do business in Minnesota, includ-
ing seven minnesota life companies, nine life
companies of other states, two accident COM
panies, one Minnesota cooperative steam
boller company, and one company of another
state. Eleven companies withdrew from the
neld, including five Minnesota life and one
accident company Of this state
me assessment life companies increased
their receipts from $25 900, 600 in 1894 to s2e
O0o,oOo In 1895, while the balance of assets
nRewlse increased from ST., 900 to $15, ,0OO. not
inclualng what are known as contingent as
sets to be paid by members. The assessment
Sbo
In amount of business DONE but on the other
hand the assessment life policies in force in
the state increased from As, 500, amounting to
SSS,ooO,OO0 in 1895, to 1926 policies, amount
ing to $95, 1854 900 in 1895. The losses paid last
year were $776,474. as compared, with onIv
$i5l,799 the previous year, but correspond
ing increase was apparent in their receipts.
The casualty companies show an increase
In the number of policy holders, in spite of
the decrease in the total amount at risk.
In concluding his report, the commissioner
writes:
There appear to be no urgent reasons for
legislation covering old line life and casualty
companies, further than the errors made in
the 1885 code previously referred to Gin part
one OF the report published a few weeks
ago.
There is, however, a demand for the enact
ment of a much more stringent law govern
ing assessment, life, casualty and endoW-
ment companies. The present laws are very
loosely drawn; in fact, it is about as easy
and cheap to incorporate an insurance COM
pany upon the assessment plan in Minnesota
as 1t Is to start a peanut stand on a street
corner. And after it is started our laws
make no provision whatever for the creation
OF a reserve fund to pay losses and claims.
Life companies on this plan are not required
to lay by reserve to protect the members
as they grow older, and when the mortality
increases the people are not protected. 1t is
not to the credit of the state that it allows
the creation of companies and their continu-
ance upon a plan whereby the father of
family pays portion of his hard-earned
wages for the premium on a policy which,
when the dread messenger of death does
come, proves to be either worthless or worth
less than it's face. There should be almost
radical legislation governing this class Of
companies, and it could be made without
working a hardship on existing companies.
They could be allowed to accumulate grad
ually reasonably safe reserve fund. All of
the best companies would welcome such a
law; and there should be no place in Mime
sofa for companies which not established
upon a reasonably sound basis. At this writ
ing it would probably be of no benefit to go
more fully into the details Of this needed
legislation. 1t is sufficient to point out the
duty of the next legislature to protect the
people patronizing this class of companies.
AS a rule, they are those who can least
afford to lose their money, and their families
are those who suffer most when the insur-
ance upon the life Of the husband and father
proves worthless.