The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-01-11

car SrrsesNs ss- ~~sa-R Ana ratr.otiss
81 <,< 4frasDsss . tss E'~VcS -arss lskssla
ssns e.ne tassceSrS q A~ embracing rsei
rcsSs-ssasss s~rusls1s assessment coEd
z,sfhcs - seilss he S.xts IL cSgapStltisl
I salf asss es 11Ss s~sss<t cr is II scrprir
5as sAas~sA osz 92rs Eu1n sssxls esela,1
snfer4 setr seSG GgresrrftE.s - divert III
rama n. cse s-sssssesrsg
%ssssSay1z. cass .-aE<s Axre - sls2,si
s1ar "a H-ctcss ssss-ss - rAyEaenS %
'cssarahst NraSus. q sEyhsisn nrs ~-e tie
l'e~t sAAs @ 0qr Legislators become NOR.
2SniAiaT xsf sNt f.t-seScies ., TIE busl.
faSs -ilAl shars WI - q elSpls iion 10 DE-
rFsEss sNr rNEcs CO sntA companies A< sci
salSs l.ss iass-xrcs. Er& increase a; on iaai
eiAss shAs cSnN.Rs w;gA (. FEATURE II
shs cf.urs >, a. l1vessTsuas- Neither are
We Opposed q sAe organization Of Texa:
cn--f&ascs, csFsecikily en The Assessment;
rlEA. as Ne reSG@s that ghr caly plan thai
MI s~rasE a company Absolutely SAFE Il
Is unfortunate GGs We have batn 50 Ions
without theEl sa; We hoTS that the COCA
lazcf q our stare al. never be furnished
~ the fassgTe o. oaf issxsi reserve life "a
sUraact cOs1pAalrss As has eetn The Sass
Niih ls3rr o. be- sister S,Gies
To a1ae1tAse % organize and build Up !
iae@l reserve company II Texas al this ad-
rkaced sage wcAlG ~ a course similar 10
Gssp.n ~ VIII tie use Of our railroads
ara Eoins back % f.e on cart to Aho.ishias
oli alcc1rsc heh; wants and reading by a
,Sllow candle. - setting aside cur self
I binders ans returning 10 the Use 0, the
REAP aoak.
! ASSESSMENT insurance is an institution
+ O. EnoasTa eeyeio;-ezt- and oae that Ap-
Z f'tsAs 20 ihe intelligence 81 The public and
We haia ;hGi the intelligence OF our people
oe-aEaas La Il We are to have Texas life
izsz-41ce COM Eaaics they should be organ
!Ecc on e gls2 that viii render them as
sANie E. the goveilmelt itself. Owe. I0a
their cerslopznV1i was much more propti-
cOs EAa are the coalitions Of the present.
. taxing WIN them i1ta the receivers gutter
U1te han one hundred millions Of dollars
q ioe peoples 1scner. 4; seems from this
ilAi TIE legal reserve is no; such i pillar
a. s.rs1E;h siia- all When fully under
SOD he supsr;oriiy o. the assessrneu,
stsretn = not doubted for a moment
HT1s1y stated. Ire difference between the
40 systems uzy De summed up as fol-
loss TIE premium Ct Z legal reserve
co1lptry is based upon the assumption that
ever Ioi-ty issued BY The company viii
eventually become i claim by death when
he experience o, 4 century prove conciu-
s!ve.T 'hif less than half Of the people
- 10 insure remain u company until
aiken by death The premium OF well
regulated asSess,nen: COMPANY is based on
the Gssamg'icn that The lapse rate viii re-
Zsl1 as rNce and certain n the future as
Il Las tcsa IN the past,
4-e mortality element Of a legal reserve
if-u-l lru is based o. some one II the stand
ard mortality tables The assessment com
I'ali4s use Tor tbs purpose .dentlcelly the
s21a ise.e= III excessive reserve ele-
Dtn, q = isrA! reserve premium baged
up = The ;s,ss assumption that NJ lapses
via u ~ is prohibited by laW from b.
;as use1 icr tte payment ~ death claims
20 !ons az ih particular policy for which
- rfs@rFe IS Intended remains n force.
This peculiar lessi restriction renders
hho1t ~ per cent az the assets Of legal re-
serve companies unavailable IN case of
severe epidemic and 10 This restriction is
Tsfe2ble many disastrous failures
hf reserve or equation element OF 4 !
properly adjusted ass ssrnent premium 5
Aats1 on he actgal experience Of the past [
ard ia such an amount az Will provide for I
ihe l-creass Ia mortality due 70 advancing !
age IL j. also available fer the payment !
y o's should tha mortality e'eTa n 7
prcFe insufficient. II The ne; premium OF I
: lsEs- reserve company at a given age Is /
slt-s7 and only $ O. q IL available for cur /
re1t death losses sad the ret premium nt
an ssshssIneI' company for the same age
is ~ y. sli o. which car be used IN case !
- a. ernerIPncy. what sane rsn Will !
guest On The superior death paying power
~ ine sssessrlsu; company Were We to I
iase enc Of our prominent assessment com I
rSnies and place II under the legal reserve .
h.
retsnlp 10 be =, II would require an in
crease 10 is prs.ium OF about SO per
le". yet TIE change would decrease its .
-ea'h paying power seven claims per each /
14 men Insured.
The expcnse element Of legal reserve
prem I'm IS determined by adding a given
- cent 20 the ret premium CASUALLY 30 Ia
Pr cent ana as the net premium at age
Y Is sle51 AMI at age 60 IS ISL IS. at age
% mar is charged 1896 Tor expenses.
= HE nc man aged ~ is made 10 pay
~ - for the same service, You had just
b well ehsrgs a rnsn according TO his
Eight for ihea;er ticket
The e1psuss element OF an assessment
TcElum IS uniform per thousand az all
zgcs. and ~ limited TO whatever amount
ne Company agrees TO in It's policy con.
tact
The mortality and reserve or equation
leiae1t q 4 properly adjusted premium
ne rece9sari.y based upon the death and
stse rate Of the past. sssunir9-a reason
Die gate OF Interest. For almost two cen
sFieE the death rate. while subject to
liEnt Igctus t!pns, has been remarkably
Lltcrfn ~ ans rate. II has 81 tar been
eitned 70 certain scope sun the pos
1iiny o. the 5eslh rate IL the future ex-
teoiEs TIA, d the pag, creates al element
Z Incersisiy that no prYoent conpany
'l izncfe- Therefore when the morteliiy
j. reuf - q premium has beea collected
nnlc-tnt ~ provide for the most excessive
'ee;n rate ever knoNn. With me ADDITION
Z ~ EQUATION 70, reEcrYe f.n6 sufficient
0 u.sei The natural Increasing cost due 10
fYsnsing age. there st. remains remote
tlrhK'ncy ttsi must be provided for iu
as ~ tao w2Ys. ana right mere Hes a
2itrlsl fiaefeace ia the Two system.
b. greiel-fp cbsrged by legal reserve
capable evidently embraces hoasy
f ere large. e. evidenced by their large
.Ties14 ef,ius'es n fact the very na -
IRE q L fzed premium with which 70
sff coraiiion fhst can not be pre-
eTri1ed CARRIES with It the necessity
- pseroaSTge and as this 0yerrhsrge
sce - IN Ent companies has never been
1-nc reress&ry. he most Ingenious meth
~ base teen afVrfed for iis retention By
-ary sclgzLlez. II q fixed prem UNI be
.llfcied AMI dividend returned annually {
= he p1li~Y holder. tbs exact cost q the /
lfrfsEce ran only b. determined by the I
1p4lt - the diFicpnd n the dividend \
~ a&sE y ehoNE a corresponding Increase !
'hr fcst o. the Insurance For example /
,erf sge LEGAL reserve companies who re.
ffred 81 high e. - PER cent Of their prem '
ituN ~ ~ lCNNfs 10 rsyikey raiferg IN isSD