The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-07-14
OFFICIAL 0. X.
It Is Placed on Kansas Mutual by
State Examiners

Senator r. T. Beattey and w c. Aus
tin have completed their examination
as repreSen tativeS OF the state depart
ment of insurance of the Kansas Mutual
Life Insurance company. Their official
report was filed today with Superinten-
dent Church
Some weeks ago policy holders com
planned to the department that the
company had unjustly raised the prem
iums on the 1856 policies. Mr.. Church
investigated the matter and found the
officials of the company willing to ex-
plain in every detail why the premiums
had been increased, in accordance with
the contract in the policy and also in
strict accordance with the most imprOv-
ed and accepted plan for conducting the
business of life insurance comDa MES.
The examination has resulted in a fav-
orabIe report being made concerning the
affairs of the company. The report is in
Topeka, Kansas, July 18th, 1899.
W. V Church, Superintendent of Insur-
ance, Topeka:
Dear Sir=We have completed a re-
port in pursuance of your request of
May 22nd, 1899. and of the Kansas AIu-
tual Life Insurance company of May
Goth, 1899 in which President Davis
says: Believing that a personal exam
nation made by you or under your su-
pervision will be appreciated by and be
satisfactory to the policy holders, you
are respectfully requested to make or
cause to be made a thorough eXamina-
ton of the policy contracts the com
pany's method of handling them, the
collections thereon; also a complete and
searching examination of the company's
books, accounts, vouchers, policy con-
tracts, assets, securities and methods of
doing business
After thirty-five days or investigation
we beg leave to make the following re-
port:
We have made a most thorough ex-
animation of their books, the policy con-
tracts of the several plans, vouchers,
affairs of the company as reported in
their annual report of December 31st,
1898. The accounts are kept in a very
systematic and thorough manner. Each
and every item may be traced from its
receipt to the payment of death claim,
dividend or expense as the case may be.
The surplus and reserve fund of the
company are largely loaned in north
a market value far in excess of the
loans made thereon.
We are of the opinion that the loans
Of the company could be sold on the
ands of dollars.
That the affairs of the company have
been managed with great care, skill and
honesty there is no question We find
that premiums on level premium poll
cies are based on the actuaries tables
and 4 per cent. AS far as the policy
contracts of 1885 are concerned after
most careful examination of the policy.
the bylaws and statutes, and after
having consulted attorneys in the mat
ter, we say the company has honestly,
carefully and faithfully carried every
part of the contract into force to the
equity of each policy holder. We de-
sire to add that the premiums OF the
policies of 1886 are what is known as the
natural premium, that is to say, the
insurance is sold at cost, and as the
policy holder advances in age, so his
premium must advance in amount. But
by careful management and a very low
death rate the funds that accumulated
in the early history of the company
have been used to hold the premiums
level until 1897, when with an increase
in the death loss the company was
obliged to call for the table rate at age
attained. This was an imperative duty
Of the officers for the protection and
equity of the policy holders as provided
by the policy, bylaws and the laws OF
the state.
In conclusion we wish to call attention
TO the splendid financial condition of
the company which has the full legal
reserve invested in first-class Kansas
securities and deposited with the state
treasurer and has a surplus of more
than $40, 900. Very respectfully yours,
r. T. BEATTEY,
R T BATTEY
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