The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1901-05-02
Something About Life Insurnncr.

To the Editor of the Journal and Courier:
Permit me, through your columns tt
call attention to Volume III. of our insu-
rance commissioners report, just out
and is devoted to the life and accident
department of the insurance business
The report is decided advance upon
all it's predecessors, even over that OF
last year, which was excellent dlsclos-
ing as it did for the first time in the
history of life insurance in this state
how much in the aggregate the several
companies loaded the met premium
for management expenses" an item OF
information which is of vital importance
to the insuring public, The present re-
port goes still further, and lets in more
flight by naming the table of mortality"
under which each company transacts
business, and the rate of interest 1t as
sumes. 1t also states definitely how
much Of the annual income of each
company from it's total invested as
sets" is required to maintain the legal
reserve and in a parallel column 1T
gives the total amount of that income,
hence the layman can see at q glance
how much, If any, is left for ''divl-
dends.''
/ Like the report of last year, this one
states the exact amount each company
collected during 1900 for management
expenses;" and in a parallel column it
gives the aggregate amount which each
company expended in that way, hence
| it IS easy to distinguish the extraVa-
CANT from the economical.
With the official knowledge which
| this report makes available to him. the
average layman Of ordinary intelligence
may now ascertain the truth on these
three all-important points, viz:
First. Whether this or that company
which is bidding for his patronage Is
economical or extravagant in its man
agoment, expenses. Second. Whether
it's Income from its invested assets"
is really large when compared with the
amount required to maintain the legal
reserve" Third. Whether its NOR
tality losses" are large or small when
compared with the table Of mortality.
To. show how very important the
knowledge which may be gained from
these three sources is, / will here state,
SO far as management expenses IS
concerned, what was the experience, in
1900, of twenty-one companies doing
business in this state on what is known
as ''the mutual" or the participating
plan" That Is to say, companies which
promise to return dividend sooner or
later, if there Is any. to the insured.
The sources of that promised ''divi-
dend'' are mainly these three, viz.
"a The management expenses" may
be less than the sum collected from the
insured, the balance belongs to the
dividend fund"
~ The income from the invested
assets" Of the company may be more
than the sum required by law to man-
tain the reserve for the protection Of
the policy-holder; the balance belongs
to the ''dividend fund"
(S) The death losses during the year
may be less than the number expected
and provided for In the premiums col
lected: the balance belongs to the "div-
idend fund.-
It would require too much of your
space to state the experience
Of each Of the twenty-one companies
all the above named Sources
VI uiNluctlu, Will tilVtGA'tS Ai''Aie 'Nis
self to one of them, viz, Management
expenses"
The report shows that Company A !
its business during the year
1900 for sum Of money which Is
fraction under 20 per cent, of the met |
premiums" which 1t collected from the
policy holders during the same year
Had each of the other twenty compa- |
MES managed its business for like !
Of it's total premiums the |
result would have been as follows, viz:
Company r would have saved for It's
dividend fund" $429.126
Company G would have saved for it's
dividend fund" s61,764.
Company d would have saved for its
dividend fund.- s302,633.
Company Il would have saved for its
dividend fund" SS4,220.
Company + would have saved for it's
dividend fund" $1,556,SS4.
Company G would have saved for its
dividend fund" s498,731.
Company I'll would have saved for it's
dividend fund.- s313,65s
Company 7 would have saved for its
dividend fund" $316,19S.
Company would have saved for it's
dividend fund" s215, 1926.
Company K would have saved for it's
dividend fund" $10S,994. T.
Company L would have saved for its
dividend fund.-" $4574, 343.
Company M would have saved for its
dividend fund" $347,031.
Company N would have saved for it's
dividend fund" s119,721. s
Company 0 would have saved for its Q
dividend fund" $4,01O29s.
Company p would have saved for its s
dividend fund" $456,367. 0
Company @ would have saved for it's r
fund.-" $1S9,SS4. t
Company r would have saved for its II
dividend fund" $13S,036. u
Company S would have saved for its n
dividend fund" $237, 6O9 6
Company It would have saved for it's il
dividend fund.- $276,572. S
Company U would have saved for it's Y
dividend fund" $49G4S6 Il
Returned as "dividends' to the in II
lred would have lightened their bur- C
snds very materially, but expended in a
they are gone beyond T.
call. v
% show that q company which is B
reful to keep it's management expen- lie
s. down may be trusted to take good 81
re of the other sources of dividend" l.
so, I will compare the experience of
A T |