The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-05-10
a liability of said company on the report for

a liability OF said company on the report for
year ending Dec. 81. 1855.
"'Third-That said company advertises and
holds out TO the public that IL pays its losses
In full when as a matter of fact is actual
cash payments on losses incurred during the
year ISIS were much less than the face value
or the policies as will appear by reference
TO copies Of the letters attached hereto.
"Fourth-That such company claims as
an asset certain liens on its policies for de
ferred mortuary premiums. Such liens are
not a good asset and the issuing OF such
policies Is not contemplated by the law un-
DER wnlch II Is Incorporated. Such claimed
assets give 10 the company a credit TO which
IL Is not entitled.
."Fffth-That said company issues forms
or policies undertaking 10 pay stipulated
and estimated sums Of money 10 its policy
holders which is violation of said act.
"Sixth-That said company issues limited
payment policies. when such policies are not
Incorporated. Members of all assessment
insurance companies are liable for their
proportion Of the losses. The policies of said
company contain a clause authorizing addi-
tional assessments and TO term them limited
payment policies while they contain such a
condition is misleading TO the public.
company are such as is contemplated or
authorized by the law under which it is in
"Eighth-That said company claims to
maintain a reserve fund which IS not per,
mitted by the law under which it is incor-
'Ninth-That the expenses of said COM
pany are not provided for by either fixed
annual payments or assessments made and
designated 10 be for such expenses as re-
CURED by law"
The statement of assets referred to
showed: First mortgage lien. $50; money
in banks, $12, 0S1 40; agents debit balances,
sS03. 50; bills receivable, $3.50 interest due
and accrued, $lZ5.43; deferred premiums, less
30 per cent. of first year, and renewals, less
10 per cent, $30,99S.0l: deferred mortuary
premiums secured by liens on policies, ST.
S0S, SCI; furniture and fixtures, 500; or gross
assets, 81, S4. 294. 40. Deducting assets not ad-
mitted, which amounted to $2.077.50, the ad-
mibted assets were reported to be 81 .s52,-
1850. The total liabilities were given as ST.
81 800, of which S1,s0 ,2G4.1 IA is given as be-
paid-up assurance on the basis of net
single premium. The balance stated to be on
hand to protect contracts was given as $f0,-
1850, which was divided. In the mortuary
fund, so, 713. As; in the trust fund S207 and
in the expense fund, $5,17.63.
The one feature which was more objec-
tionable to the auditor of state than any
other was counting as an asset the liens
on policies, which amounted to 81. sos. S62.
These liens represent money not yet paid In.
as CLEANED from the American tables of
mortality. For example. a person twenty
years Of age may be expected; from the
for forty years. IL a person at this age
takes out a policy for 81 600 and pays an
annual premium of $50. it is expected, pro-
vided he lives the full time allotted by the
tables. that he will pay in $500 and receive
$1,Go insurance. The lien plan is that IL
he should die before the full time the COM
pany is to pay the difference between the
amount he would pay in and the face of the
policy and the premiums paid. In the case
of death after one premium was paid the
beneficiary would receive the $40 premium
paid and the difference between the $500 and
the face of the policy or 500. The other
$3.50 is counted as a lien on the policy and
it was these unpaid liens that were counted
as an asset.