The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-11-30
REPORT IS FILED.
Actuaries of Kansas Mutual
Complete Their Work.
Find Apparent Surplus to BE
$24,9l5.35.
BONUS is $1OO,184.O1.
Total Amount Credited and Ap-
porti0ned Is $7S8,71l.39.
Trustees Assure Policy Holders
That All Is Safe.

According to the report of the actuar-
les in the Kansas Mutual insurance
case, the surplus of the company, liable
for distribution in two annual payments
for the reduction of premiums, is $24,-
915.35. but there are certain other debts
to be paid out of this which will reduce
the amount to about $17. 900.
In addition to this the bonus paid to
the policy holders by the Illinois Life
| is $100.1S401. This makes the total
amount to be applied under the two
payment plan for the reduction of pre-
miums about $117, 900.
In addition there is a fund of $123,-
3O7.O3 which constitutes a guaranty fund
and reserve on what are known as or
| iginal plan" policies. This fund is to
be distributed among the Original PLAN
policy holders in the form of an annual
reduction of premiums from now until
the death of the insured. The exact
amount of the annual reduction has
been figured out by the actuaries for
each one of these Original plan" poll
cies, and appears in their report
This makes a total amount to be ap-
piled to the reduction of the premiums
on all policies, Originals of 1886 and
1888 and later ones of in round num-
bers $240,000, of which the items are: I
| Bonus, $100, 600; quarterly fund and re-
serve $123,000; apparent surplus S24,oOO,
less about 81 900 estimated expense for
actuarieS and Kansas Mutual omcers
commissions.
Out of what the aetuaries call the
apparent surplus" of $24.915.35, they
recommend that $3,659-eo be paid TO
Davis, Moon and Welcome, the OLD
Kansas Mutual officers, as full settle
ment of certain renewal commission
contracts upon the expense portions OF
the premiums. 1t is considered prob
Ill hot will IL
aries So, 500 for their services, and this
will come out of the $4,000. There Will
also be the clerks fees for filing the
report, and any other legal claims
against the estate not provided for by
the actuaries' report These additional
liabilities are what will reduce the
apparent surplus" to about ST 900.
The report covers the entire history
| of the Kansas Mutual Life up to the
30th day of June, 1908, at which time
/ the ownership passed to the ILLINOIS
Life. 1t is typewriter on great folio
leaves two feet square, and comprises
158 pages. Every policy ever issued by
| the Kansas Mutual is taken up indi-
vidually, and the exact amount in dol
lars and cents which that policy will
receive out Of the $4,000 bonus is set
forth. The report also shows, in the
same tabulation, the amount paid in
in premiums, the credits to various
funds, and other points of Importance
| to the affairs of the company.
The division of the surplus, however,
is not set forth in money, but each
policy is credited with certain per
| cent of the whole. This plan was
adopted because it was not known ex-
actly what the surplus would be. So
accurate is this computation that the
per cent for each of the $500 policies
is carried out to six places of decimals
and the footing for the entire list va
ries only few naillionths from 1 unit.
When the court approves the report,
and determines exactly what the sur
| lT0ITT &c will
multiply this amount by each per cent.
to find the amount of cash due on each
policy.
The officials of the Illinois Life state
that the company will begin to apply
the credits to its policy holders as soon
as the report of the actuaries is ap-
proved by the court General Counsel
/ t. K. Long states that Judge Hook will
approve the report, although he has re-
tired from the position he held at the
time the case was before him.
The report shows the admitted assets
June 30. 1903, as follows:
| Mortgage loans and interest
due and accrued .......... $573 864. 90
Loans on policies and interest
due and accrued ....... 54,s52.92
| Renewal premium notes and
interest due and accrued.... 44o.ss
Cash in office ............ 2,02049
Cash in Merchants National
bank, Topeka .--.-.--.-..--. So 232, SO
Cash in Central National bank,
| Topeka. 4S,S25.40
Cash in Bank of Topeka. 1892
Net uncollected and deferred
| premiums. l,lf0-Uz
/ Total net admitted assets. STE, ,085. .O1
From the foregoing assets are deduct
ed the following liabilities:
Death claims .-..--.-..--.....s 17,sa2.ss
Guaranty fund and reserve on
original plan policies s.......- 1923, 307.03
Reserve on all other policies. $40, ,305. 90
Additional reserve under re-
insurance contract .-........ 29.155.sO
Fees and allowances of trus-
tees ............ -. 25,oOO.Oo
Miscellaneous allowances, in
Guiding clerk hire, printing
bills, stationery, etc.,. 15.069.44
Leaving a balance of approximately
s24, ,915.35.
From the foregoing it appears that
the entire amount to be credited to and
apportioned among the policyholders is
substantially as follows:
/ Total policy reserve and guar
anty funo $66S, ,6l2 O3
Surplus, approximately "a, 915-35
Reinsurance bonus .-..-....-. 100, ,1S4.01
Among the miscellaneous claims con-
sidered by the actuaries are the claims
Of Davis, Moon and Welcome under
certain renewal commission contracts
upon the expense portion of the premi-
umS These claims are upon contracts
that, if allowed in full, would extend
over a period of approximately nine
years The actuarieS. while not speci-
fcally allowing these claims, recommend
TO the court that they be allowed for the
reduced sum Of S3,659.90. which is a
trif1e less than the total commissions
accruing under these contracts prior to
June 80, 1908, the date of the transfer to
the Illinois Life Insurance company. The
foregoing recommendation for allowance
is made upon condition that the claim
4 ants release and discharge in full the
Kansas Mutual Life Insurance company