The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-12-30
A FINE SHOWING
SYNOPSIS OF REPORT
Examination Of the Northwestern
Life and Savings Company by
the Insurance Department of

WISCONSIN.
The examination was made as OF Dec.
l, 1902, and covered period from Jan. 1,
1901, to Dec. l, 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. !, 1902, and a certificate from the
cashier Of the bank gave the amount on.
deposit Dec. the same as shown by the
books of the company.
Il The Northwestern Life and Savings
company provides in It's policy contracts
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 saw
Ing, as will be seen by the last annual
statement filed with this department,
where the stockholders capitalized TWEEN
ty-fve thousand dollars ($25,000.00) from
the surplus. ~
All policies issued by the company pro-
vide for a saving fund In which all per-
sistent policyholders share, at the end Of
the period for which the policy was writ
ten. The savings fund consists Of:
-
fund in excess Of per cent. =
q. The entire reserve Of members who
lapse and all interest earnings of such
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 that
the management had kept within the
amount agreed upon for expense and
mortuary purposes and they still have
a stockholders surplus.
The Northwestern Life and Savings
company does not enter any claims on it's
record until after proofs Of death are re-
ceived, consequently did not report the
amount Of death losses Dec. 81, 1901,
which had been reported and no proofs re-
ceived. We found death losses reported
and not entered to the amount Of $250o.o0,
which should have been carried in the an
hual statement as a liability
We also found, as reported in the an
nual statement Dec. 81, 1901, $19,O09.95
loans on company's policies which were
assigned to the company as collateral,
but $5,822.53 of the above amount was
loaned on policies which on Dec. 81 were
delinquent, and as these policies have a
paid-up value we contend that the COM
pany should carry as a liability reserve
equal to the amount of the loan.
The death losses unreported, minus the
reserve carried by them and the reserve
on policy loans which were delinquent.
carried as a liability would have reduced
the surplus Of the company Dec. 81, 1901,
from $50, 657.65 to $44,185.12. .'
The funds Of the Northwestern Life and
Savings company are invested in first
mortgage farm loans on property worth
twice the amount Of the loan and the
| mortgages are deposited with the auditor
of state of Iowa. -
All policies upon which loans have been
made are assigned to the company and de-
posted with the auditor of state
The following statement of the condition
of the company Dec. 1, 1902:
Balance Dec. 81, 1901. ....... sos, 3O6 10