The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1896-05-12

year was over IouE times as great DIS
the increase in assets, and the increase
in surplus was correspondingly re-
duced, .....
Assessment Life Companies.
There are fifteen assessment life asso-
Citations doing business in the state,
five of Connecticut and ten of other
states. They have assets, $40, 53S, ASS;
liabilities, $11, S9O,SS2; income, S15,S2S,-
4S9; outgo, $15,S46,5SO. They wrote $780,
019,029 Of business in 1895, terminated
$3.50, 550,905, and have SS2S ,S12,214 in
force The sum of $10,6S5,745 was paid
in losses in 1895, $407, 1922 Of which was
in Connecticut. They wrote S6,005,0S6
in business in Connecticut and have
$2S, 577, AIS in force.
The number of assessment associa-
lions is the same as last year, but
owing to admissions and withdrawals
their identity is changed. The assets
are larger by one and three quarters
million dollars, and the liabilities are
greater by over half million dollars.
The income was two million dollars
more, and outgo was two million three
hundred thousand dollars more than in
1894, The amount of insurance in force
December 81, 1895, was an increase of
over twenty-four million dollars during
the year. Within the past year nearly
all the leading business assessment as
sociations have been compelled, by rea-
son of the advancing age of members,
to raise their basis of assessment,
where the terms of the certificate per-
mitted, to figures approximating at
tanned ages. Certifcate-holders have
usually acquiesced when the facts and
necessities have been explained and
understood. The loss of membership in
consequence has been small, notwith-
standing the disappointment in having
rates increased, which had for years
been sedulously canvassed as perma-
nent. Those associations which are
sound and properly conducted should
be protected by the enactment of prop
er laws to determine insolvency in adj
vance of actual default.
Accident Insurance.
Eighteen companies now write acct
dent insurance in Connecticut, ten joint
stock and eight assessment. They re-
ceived during the year as premiums,
SO, 662, 400, paid $4,424,252 in losses, had
81, 942, 1854, 794 at risk, and wrote Sal, 402,
327 in insurance within the state.
Expenses in Life Insurance.
The intense competition for new bus
mess has not abated during the past
year, although some companies have
shown sufficient consideration for the
rights of old policy holders to allow
their volume to shrink rather than to
pay the enormous expense necessary to
maintain it during a period of financial
depression. These companies have
been rewarded by proportionate in
crease in surplus. The fierce competi-
ton between companies is fast de"
scendipg into an unseemly struggle to
pull their agents away from each other
and twist olicyholders from one COM
pany into another. The disproportion
between commissions for the first year
and for renewals is such as to encour-
age an illegal system of rebating, or to
induce the agent to leave the company.
The most disastrous exhibition of the
effects of these high commissions Is
upon that class of policies into which
the investment feature enters most
largely, such as short term endow-
ments. These are offered to the public
as profitable investments. No compa-
ny has any other source of profit than
that which comes from interest earn
ings, the same as a savings bank. The
cost of conducting savings banks is
about quarter of one per cent. on
total assets-in life insurance about
five and one-haf per cent. 1t would
be as much in savings banks If agents
were paid so per cent. on all first years
IN sIfh nee
auent deposits Tontine schemes have
served both to increase expenses and to
hide the results for many years. They
have greatly multiplied misrepresenta-
ton and rebating. AS consequence,
American companies are being driven
out Of foreign countries for using
questionable methods.
Examinations of Companies.
The quadrennial examination of the
| Connecticut Mutual Life Insurance
company and the Aetna Life Insurance
company have been made. The results
of the examination of the former COM
pany show an increase in it's surplus as
allowed over the amount reported by
| the company December 81 1894. Econ
omy and fair treatment of policyhold
ers are characteristics. The surrender
values given to those who wish to dis
continue are liberal, and to those who
remain the annual dividend Is large
| The company's management is opposed
! to the extravaganza and risk incident
| to modern competition in the rush for
new business, is therefore conservative
| in it's commissions paid for new bust
| ness, and confines it's canvassing to the
| United States since disseminating bust
ness in Canada in 1878. There has been
no material change in the company's
condition since December 81, 1894.
| OF the examination Of the Aetna Life
Insurance company the commissioners
| say:
LAS the company closed its books
promptly on December 81, 1885 a larger
| amount of uncollected interest appears
among its assets than usual, which is
not, however, indicative Of weakness in
the security. Interest is collected
through loan agents, whose books are
not subject to examination. In view of
| the large defalcation which occurred
under similar circumstances in 1889 at
Indianapolis in another company, it
would seem advisable to have some
| check against these loans being paid off
| without the company's knowledge
r,l,a W.. Iit,r hoe LaYot