The Saint Paul globe., 1900-04-11
ITS CHANGE OF plan
OFFICIALS OF BANKERS LIFD
ASSOCIATION MAKE ANSWER TO
MINNEAPOLIS GRUMBLERS
FOR THE PROTECTION OF ALL
Purpose of the Change I'm Policy
Forms Is Said to Have
This In View
Solely.

AHSurdHc6 commissioner OSnauSnneS-
sy has received a large number of in
Quiries from policy holders in the Bank
ers' Life Association or st. Paul, COM
planning against the policy of the officers
OF the company in trying to exchange the
existing form of policy of mortuary as
sessment for what Is known as a guar
antee option policy. The new policy costs
more than the present one now in force,
and they object vigorously to accepting it
in lieu of the old policy. All new business
is written under the new form of policy,
but some of the old policy holders COM
plain bitterly OF the new arrangement
and question the right of the officers to
make the change. The company, on the
other hand, are merely taking the step
to protect themselves and place the in
surance which It Is writing on a firmer
basis.
Insurance Commissioner O'Shaughnes-
sy has just completed an examination of
the affairs of the company and has not
finished his report yet, but 1t will not
vary to very great degree from a state
ment recently made by the company and
now on file III the Office Of Insurance
Commissioner O'Shaughnessy.
The insurance commissioner, discussing
the matter yesterday, said: II have just
completed an examination of the Bank
ers' Life association, but the report has
not been arranged in form to get an
idea of the affairs of the company. l
have been informed that the company is
issuing a new form of policy to take
place of the old, and the company is
endeavoring to have the old policy hold
ers accept the new policy in the place of
the old one. The rates charged for In
surance under the new policy are based
upon the standard rates of mortality.
The Bankers Life of ST.. Paul has nearly
81, 600, 600 in assets, over 100000 of which
is in United States bonds.
Assessment insurance is getting to be
very unpopular, and there is no queS-
ton but the company VIII have to place
itself on a frmer basis or discontinue
business. This they are trying to do in
offering the new policy. The cost of life
Insurance is known, based on the stand
ard tables of mortality. Assessment
companies have been endeavoring to sell
insurance below cost. The increase. of
rates under the new form of contract
appears to be an admission of the COM
pany that the amount charged hereto
fore is insufficient to mature the out
standing policies. The Bankers Life
seems to be taking time by the fore
basis. The law does not require that
this class of companies make deposit
with the state treasurer for the security
and protection of it's stockholders. L
understand, however, that the Bankers
Life has made voluntary deposit with
the state treasurer of 100000
The Bankers Life company is one OF
the largest assessment companies In the
West 1t has in the neighborhood OF
13, 600 policy holders, representing risks OF
$22 161 500. The company paid losses last
year of $2S4, ,OOO and its receipts from all
sources were $420,870.
Officials of the company claim that we.
tor Welch, one of the members OF
Minneapolis committee, is not policy
Clarence e. Secor said yesterday that
the polfcyholderS everywhere were gladly
taking advantage of the change in plan;
that less than one in hundred CT all
those solicited to make the change mad
objected. People who hold insurance and
are therefore interested IN the SUBJECT
have come to realize that 1t is impossible
to sell assessment insurance in the lace
of the united opposition of the insurance
commissioners and the insurance press of
the country; Massachusetts has even gone
so far as to prohibit the sale Of assess
ment insurance in that state, making 1t
as much a criminal act as to sell lottery
tickets. All of the former strong assess
ment companies save one have changed
or are now in process of changing to the
stipulated premium plan. Ihey nave all
met with some difficulties in making the
change, but these have been overcome
and the policyholders have in the end
been well pleased with the change. It is
simply changing from method that has
failed to Withstand the test of time-an
unScientif1c method-to a scientific method
Of insurance Members must be informed
that the only equitable method of adjust
ing assessments is upon the basis of the
cost of life insurance at the attained age
Of the insured.
The change in the plan Of insurance was
begun at the suggestion OF David Park
Fackler, one of the leading actuaries of
the United States, formerly president of
the Actuary Society of America, and, of
the company's counsel. The new plan
was approved by H. w Chflds when he
was attorney general, and by Elmer
Dearth, then insurance commissioner.
Since the change was made, the company
has been transferring insurance at the
rate of $1,000 600 per month, and the Of
f1cers say that had the company placed
more men in the field the change could
have been made more rapidly.