The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-12-29
SYNOPSIS OF REPORT
Of Examination of the Northwestern Life
and Savings Company by the Insur-

and Savings Company by the Insur-
ance Department of Wisconsin.
1.-THE eXa NINA ton was made as Of Dec.
t. 1902 and covered period from Jan. j,
1901, to Dec. 1. 1902.
All disbursements for expenses and
death losses were properly checked from
vouchers, and receipts were checked from
cash book into the ledgers.
A trial balance of the books was taken
Dec. 1, 1902, and certificate from the
cashier of the ba nix gave the am ount on
deposit Dec. l the same as shown by the
| books Of the company.
| The Northwestern Life and Savings
| company provides in it's policy contracts
| that the entire first year premiums and
| 9 per cent of subsequent premiums shall
| constitute the expense and mortuary
fund; also the reserve plus per cent in
terest which was contributed by the de-
| ceased policy holders.
BY this method of management the
stockholders are able to make quite a
saving, as will be seen by the last an
. nual statement filed with this depart
! nent. where the stockholders capitalized
| twenty live, thousand dollars (S25 900. OO)
| from the surplus. ..-%a
All policies issued by the company pro-
! vide for a savings fund in which all per-
sistent policyholders share. at the emo
of the period for which the policy was
l. All interest earnings on the reserve
| fund in excess Of four per cent.
| 2. The entire reserve of members who
lapse and all interest earnings of sucl
lapse fund.
3. Fines and penalties collected for re-
| instatement of lapsed policies.
4. All profits accruing in the reserve
fund by reason Of policies SURRENDERED
under loan or surrender privileges.
The examination disclosed the fact tina
the management had kept within tn,
amount. agreed upon for expense anc
mortuary purposes and they still hav,
a stockholders surplus.
The Northwestern Life and Saving
company does not enter any claims on 1t
record until after proofs of death are re
ceived. consequently did not report tn
amount of death losses Dec. 81, 1901
which had been reported and no proof
received We found death losses re
ported and not entered to the amount o
. So, 10000 which should have been CARRIE
, in the annual statement as liability.
We also found. reported in the an
J nual statement Dec 81. 1901. $40, 8
loans on companys policies which wer
assigned to the company as collateral, bu
SIS, S22 SO Of tn eabove amount was 1oane
S. 500 SO Of the above amount was loane
linqueilt. and these policies have
:, paid-up value we contend that the com
pany should carry as a liability a reserv
equal to the amount of the loan.
The death losses unreported. minus tn
reserve carried by them and the reserv
or policy loans which were delinquent
carried as a liability would have re
duced the surplus of the company Dec
81, 1901, from $52.657.65 to $44 1852. >'
The funds of the Northw estern Life an
Savings company are invested in frs
mortgage farm loans on property wort
twice the amount of the loan and tn
; mortgages are deposited with the auditc
of state of Iowa. ..-... 49,
All policies upon which loans have bee
: made are assigned to the company and dc
; posted with the auditor of state. p.
The following statement of the cond
tion II the company Dec. 1, 1902:
r Balance Dec. 81, 1901. ........$ sos, 3O6 (
Income first year -
a.. premiums $720,43S. 81 4~ -
. Income renewal " ..~ ..~
e premiums ..... S79,62o32
e Income interest. - - -..' =
etc ............ 34,016.31 $11S4,075.
. ".r - 81 942 $50