The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-08-17
ON LIFE
COMMISSIONER DEARTH'S ANNUAL
REPORT CONTAINS SOME IN
TERESTING STATISTICS
MANY COMPANIES HAVE QUIT
Several Hundred Concerns Have
Been Wound Up in Last Thirty
Years-Summary of I'm
pOrtant Legislation.

State Insurance Commissioner Dearth
has just completed part second of his an
nual report for 1900. which relates en-
tirely to the affairs of life and casualty
insurance companies. Part first which
covered matters pertaining to fire insur-
ance and fire insurance companies, was
issued in the early part of the year. This
last installment Of the report IS d review
Of the business OF the old-Ene life, cas-
ualty, assessment and fraternal-both
life and accident-and miscellaneous COM
panies operating in the state OF Mime
sofa for the year ending Dec. 81, 1900 1t
contains, excerpts IRON the annual re
ports of companies of those classes, com
paratiye figures and extensive comments
by the insurance commissioner, and is on
the whole publication highly interesting
to those concerned in insurance matters
On the subject of the so-called legal re
servesplan MT. Dearth says:
NEW COMPANIES ADMITTED.
Since the date of the last report Of
TINS department there have been IiVe old
me or regal reserve companies admitted
1Cr the transaction Of business in the
state, each with a fully paid up cash
capital stock of S1GU, eco while two of this
class OF companies have retired: Tho
American Mon Of New York, which re-
insured With the Security Trust and Life
and the Bankers Life Insurance Com
pany of Lincoln, Neb., which voluntarily
Withdrew
The increase, in assets of this class OF
companies during the year 1900 exceeded
the gam OF the previous year Q89g) by
I'll, 500. This exceeds anv previous
years increase by several hundred per
cent, with the exception of the year 1897,
Wnen the increase was practically the
Identical amount as for the year 1900
Inc increase in surplus was nearly dou-
pie that or any preceding year, with the
exception of the year 1898. For the year
19VO the increase amounted to $24 IFS. 5O7.
this being an increase in surplus over h.
year 1899 of $12 616 44S
The total amount OF insurance in force
IN minnesota in the old line or legal re-
serve companies at the close of the year
1900 was Sis, S93. 1862, being gain over +he
year 1899 Of S10,222, sill
In the matter of expenses, the total
Ioadlngs on the premiums for this pur-
pose, by all companies, was SIS, 555. SOS
Ihelr actual expenses We're $S5, 400 141
Whlch shows a saving of but per cent
from this source.
The total amount of surrender values
accrulng during the year amounted fO
S34, 7U. 3S4. Of which amount was actually
paid $25. 1905, 2SG. There. there was say
ing to the companies from this source
paid total dividends OF $26, 81, 500.
Inc total net receipts from interest on
investments We're sec, 397, 252, While the
total amount Of interest required TO
their
standing policy contracts was $54, $50. 1873.
Thus 1t will be seen that the Companies
have gain from this source Of over
$lI,00o:OOo really indicating that they are
reallzlng much higher rate of interest
on their total investments than the Law
absolutely requires.
LOSSES IN TWENTY YEARS
Another table shows the number of mol
lcles and amount Of insurance Issued
lotal premiums received, and total losses
Palo IN minnesota for the past twenty
SIX siH years. The totals show that during
TINS period l3947 policies were issued
covering insurance to the amount of
$3S5 5SS, 634. The actual premiums receiv
ed q % on .ot this I amount of insurance were
@4i 'ooI, 6Si;9l while the losses paid amount
ed to Sl3.562, 1854. This includes both
ordinary and industrial policies. This
table only shows in the way Of paw
Inents, death los;NS, and does not in
clude dividends, endowlnents, annufties,
or surrender values, which annuaiiv
amount to very large sum.
FRATERNAL COMPANIES.
AS to fraternal commpanies the COM
missioner says, in part:
insurance societies, conducting their
business strictly upon the fraternai plan,
are certainly making a very rapid in
crease in their membership. in the state
OF minnesota alone, during the wear 1900
the net increase in members was abouf
zoVVO, there being, at the close of the
AN-'oSos close
OF the year 1899. Thus it will be seen
that practically 100000 of AIinnesota's cit
liens are members of some fraternal in
Surance society, exceeding, by nearly 100
per cent, the total number of policies in
regular old line or legal reserve com
panies, exclusive Of what is termed In
drstrial business.
The present laws of Minnesota govern
ing this class of insurance societies are.
as have frequently had ample reason 10
assert, an actual disgrace to the state
L would strongly recommend the pas
sage OF q. law compelling each and every
life insurance society, whether conducted
upon the fraternal or ordinary plan to
charge rate based upon some well es-
tablished table of mortality with an an
nual rate Of interest that would give alb
solute assurance to the membership that
the protection furnished is reliable. secure
and permanent, as there IS not a single
Instance. no matter what the volume of
the Society's membership may be. which
will not. sooner or later, have the face
of its charter turned to the wall. If It
does not collect from it's members a
sufficient amount of premiums or assess
ments to meet its certain mortality cost,
and reasonable legitimate expenses.
ASSESSMENT INSURANCE.
Regarding assessment accident associa-
tions. Mr.. Dearth says:
Under this head many associations or
societies are writing accident and sick
benefit policy contracts on the ordinary
as well as fraternal plan. Owing to the
universal had rpnufa In which 90 Qalfa5