Northern Wisconsin advertiser. [volume] (Wabeno, Wis.) 1898-1925, 1903-08-06
Madison. Aug. l.

Madison, Aug. l.
Insurance Commissioner Host rem
dered a decision yesterday, which, if
applied throughout the United States,
will result in the division of some
$400,0OO,000 among the policy holders
of all legal reserve, old line and mu-
tual life insurance companies.
The Wisconsin commissioner holds
that the accumulated surplus of these
companies must be divided at least
once in five years according to the
law of the state of Wisconsin. The
decision turned upon whether the
word may" in the law was to be con-
strued as must" Commissioner Host
holds that the law is mandatory.
Vast Sum for Badgers.
Policy holders of Wisconsin are to
have divided among them $147 100000
as the result of the decision. The
question arose in the matter of the pc
tition of l.. A. Brunckhorst of Milwau-
kee against the Equitable Life Assur-
ance society of the United States, OF
New York.
May Revoke Licenses.
The decision was made specifically
in the matter of this one company, but
it applies with equal force to all the
81 similar companies operating in
Wisconsin. Commissioner Host has
sent notices to each of these compa-
MES, the number of which includes all
old line, legal reserve and mutual life
insurance companies, and has given
notice, as he has to the Equitable
company, that unless the terms of the
statute upon which the decision is
based be complied with within 80
DAYS the license of the company to op-
crate in the state of Wisconsin will be
revoked.
Host Upholds Complaint.
The complaint and decision were
based on section 1852 of the statutes
of Wisconsin, which provides that
such companies may make distribu-
lions of their surplus within five-year
periods.
The complaint submitted that this
statute was mandatory that the word
may" should be construed as must
and that the company Was not pre-
tending to make such a division with
the policy holders. The decision of the
insurance commissioner upholds the
position of the complaint, makes rul-
Fsug that the word may" is mandatory
Sand that the statute applies to all old
line. legal reserve and mutual life in
surance companies operating in Wis
consin and to that extent subject to
the laws of this state.
The department of insurance has
calculated the amounts due to Wiscon-
sin policy holders under the decision
and has found that in the 81 compa-
MES affected there is the sum of $147,-
DOC, 900 which must be divided among
the policy holders under the terms of
the law as interpreted by the decision
of the Wisconsin commissioner.
MAY Hold in other States.
The decision of the Wisconsin COM
missioner, if applied to all the states
of the union, would cause to be divid-
ed among the policy holders some
$500 900, 900. In many of the states 1t
is thought the decision will be applied
IL the test case that will
be brought by the companies
in wisconsin results in ia
yor of the policy holders. In some of
the states the statutes are even more
favorable to the stand of the Wiscon-
sin commissioner than in this state
and even though the decision fails to
stand the test of adjudication here
cases will develop in other states 10
compel the division of the shares OF
the surplus proportionate to the poll
cies of those states.
Will Be Contested
The matter has been in the hands OF
the Wisconsin insurance department
for nearly a year. The petitioner was
renresented by Senator Julius e.
Roehr of Milwaukee. One injunction
was secured by the company to pre-
vent the commissioner from annulling
the license OF the COMPANY IA ehiS
state and this restraining order was
dissolved in the circuit. Then the
petition was heard on its merits before
the commissioner. The decision OF
the question today will not mean the
immediate division of the s147, 100000
with the policy holders. N the notifi-
cation the commissioner gives the
companies he allows them 30 days in
which to comply with the order &C
companying the decision. Within this
time a restraining order will doubtless
be secured by one or more of the COM