The Washburn times. [volume] (Washburn, Wis.) 1896-1976, 1903-01-15
A FINE SHOWING.
SYNOPSIS OF REPORT.
Examination of the Northwestern Life and
Savings Company by the Insurance De-
paTtment of Wisconsin.

Savings Company by the Insurance De-
partment of Wisconsin.
''The examination was made as OF
Dec. /. 1902, and covered a period
from Jan. l, 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 2. 1902, and certificate
from the cashier of the bank gave
the amount on deposit Dec. l, the
same as shown by the books of the
company.
The Northwestern Life and Saw
ings company provides in it's policy
contracts that the entire first year
premiums and per cent of subse-
quent premiums shall constitute the
expense and murtuary fund; also
the reserve plus 4 per cent interest
that was contributed bv the deceased
policy holders,
BY this method of management
the stockholders are able to make
quite saving, as will be seen by
the last annual statement filed with
this department, where the stock
holders capitalized twenty-five
thousand dollars from the surplus.
All policies issued by the COM
pany provide for a saving fund in
which al persistent policyholders
share, at the end of the period for
which the policy was written. The
savings fund consists Of
/. All interest earnings on the
reserve fund in excess of per cent.
2. The entire reserve of members
who lapse and all interest earnings
of such lapse fund.
3. Fines and penalties collected
for reinstatement of lapsed policies.
4. All profits ACQUIRING in the re-
serve fund by reason of policies sur
rendered 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 stockholders sur
plus. 4931
The Northwestern Life and Saw
ings company does not enter any
claims on it's record until after
proofs of death are received, conse-
quently did not report the amount of
death losses Dec. 81, 1901, which
had been reported and no proofs re-
ceived. We found death losses re-
ported and not entered to the amount
of 81, 10000, which should have been
carried in the annual statement, Dec.
as liability.
We also found, as reported in the
annual statement Dec 81, 1901, $19,-
0O9.95 loans on ,company's policies
which were assigned to the company
as collateral, but S., 822.53 of the
above amount was loaned on policies
which on Dec. 81 were delinquent,
and as these policies have paid-up
value we contend that the company
should carry as 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 are delinquent, carried as a
liability would have reduced the sur
plus of the company Dec. 81, 1901,
from $52, 657 .65 to $44, 1876. IL.
The funds of the Northwestern
Life and Savings company are in
vested in first mortgage farm loans
on property worth twice the amount
of the loan and the mortgages are
deposited with the auditor of the
state of Iowa.
All policies upon which loans have
been made are assigned to the com
pany and deposited with the auditor
of state.
The following is astatement of the
condition of the company Dec. l,
1902.
Balance Dec. 81, 1901 ..... s 8JS,3O6 IS
IncOm first year
premiums go. $72o, 438 81
Income en- ewal
premiums. $4,000 80
Income Interest Il
etc.............. 54,016 81 1.134O75 A