New-York tribune., 1905-07-28
MUTUAL RESERVE ATTACKED
Examiners Report Charges Policy of Delay in Paying
Death Claims
Large Body No Benefit for Nearly 100000 Premium Isaac Wander
pool says-Dechres Lease Is Highly Overapprased

Albany. July 21.--"Seemingly ineXcusaple pro-
crastination the company's part in the pay
ment of lis just debts to policyholders' and a
conceaIment Of facts sufficient to render the
companys sworn statement for 1904 materially
inaccurate" are charges made il report or
an examination OF the Mutual Reserve Life IN
surance Company made public to-day by Super
intendeut Hendricks, The report was made at
the request of the Superintendent by Isaac Van
derpool, chief examiner Of the department
Mr.. Yanderpool says;
The last annual statement OF the company
filed with the Insurance Department and now
appearing in its published report for 1904 pro :
duces a So-called surplus of unassigned %I.llus
amounting to 1888 211 5S. The examination just
completed fixes this item at SIS 1872 l6, the ar
gerencs being due to reduction IN real estate
values on appraisal. rectfcation of reserve data
from which policy or certificate valuations We're
made, and further to the reduction IN various
credit assets by bringing the net amounts OF the
same within the respective reserves charged
against the policies upon which these credit
assets rest An exception has been made how
ever in the case of that portion of credit assets
as represented by premiums due upon the as
SeSSInent plan. called on November l ana De
cember l. 1904. for the payment Of specific
claims by death. which had been approved by
the company These due premiums were allowed
as an assets TO the extent of the sum realized
therefrom viz, $:}S. 062- Such unpaid premium
calls December 81. 1904 were found TO be $61.-
S09. of which S23S S43 were made upon policies
since lapEeO. They therefore enter into the cred
its scheduled and allowed as the result of this
examination III the sum OF the difference be-
tween S31,905 and S23S43 or. as stated, $3S.O62-
TREATMENT OF POLICYHOLDERs.
Mr.. VanderpooI gives considerable attention
10 the company's claims incurred, paid or COM
promised from December 81, 1901, to January
/. 1905 In thar period of three years the death
claims amounted to S9,023, 745 IL. From this
amount certain deductions were made, reducing
the amount to $7.497, ,364 IS. The examiner
gives the grounds on which the deductions were
made and shows that Insurance amounting to
S1923000 73 finally yields its benefciaries $685.
656 "A, there having been deducted 1898 800 80 on
account of an Indebtedness ascertained by the
company to exist against the assured. with a
further deduction of $722. .6sS SO retained by the
company for the various alleged violations of
contract by the insured" Dir. VanderpooI adds.
In Liabilities as they are returned in the
conpanys annual statement for 1904 is an item
Of slS4,9l3 25, stated TO be liability on account
or salaries. rents Office expenses taxes. bills.
legal fees due or accrued. $184,9I3 % The Ian
guage quoted is that used in the blank form for
annual statement returns OF life insurance COM
lahles- IN making UP its statement the com
rany has not heSitated To insert in writing such
additions % he printed form as might be neces-
Sary 10 ruIIy describe the nature of any item IN
be returned oy it and not covered or provided
for IN the stereOtyped OF Convention Blank" al
present in use rhe printed form. after provid
ing for twentv-one specific items of liabilities in
detail, then calls for the inclusion in the state
ment Cine 22) of Other Liabilities (gfve items
and amounts Notwithstanding this of the
$164,913 Is reDorted by the company in it's last
annual statement as being due or accrued for
salaries, rents. ofTice expenses, taxes bills ac-
counts, etc. set forth above, S1a2767 90 CON
sisted Of Judgments entered against this com
Pany. am eoa5traincd 70 believe that the re-
turn OF this item after the nnanne- stated cot,Id
rot have been the result of an inadve-tence and
certainly constituted a conceaIn1ent of facts
sufficient TO render ths company's sworn state
n1ent for 1904 materially inaccurate in its failure
TO return these judgments under their appropri-
ate title.
Further variations, in addition 10 those au-
pearlnS il credit assets and policy reserve as
between the figures published il the company's