The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-05-16
EXAMINED BY THREE
INSURANCE DEPARTMENTS.
THE PENN MUTUAL ENDORSED.
A Splendid Example of Honest and
Conservative Insurance Manage
ment.

The combined insurance depart
ments of the States of Pennsylvania,
| Massachusetts and Wisconsin have
| just completed a rigid, and exhaustive
examination of the books and ac-
counts of the Penn Mutual Life In
surance Company. of Philadelphia.
| This investigation was made pursuant
to a resolution of the board of trustees.
| inviting :" full and complete exami-
nation of the affairs and investments
of the company The trustees of the
| Penn Mutual who are all elected by
the policy-holders voting in person.
could not have selected more oppor-
tune time for an examination of this
character. Life insurance is a neces-.
sity of modern civilization and every
one is interested in its proper and eff
ficient administration. The public has
been agitated by charges which have
been published in the newspa pers and
magazines for some months past.
These criticisms. for the most part
unjust and unfounded in fact. have
caused uneaSineSS and dfStrust. and
the whole business of life insurance
has been more or less affected. The
trustees of the Penn Mutual have acted
wisely and have fulfilled an obligation
not only to the members of the COM
pany, for whom they act. but also to
the whole insuring public.
L
ing assets of more than sixty-eight
million dollars. and some idea of the
magnitude of the task. as we'll as the
thoroughness of the investigation, may
| be obtained from the fact that it took
nearly so skilled examiners and three
actuaries over six weeks to complete
the examination The report of the
commissioners has just been published
and is a splendid endorsement of the
strength and conservatism of the old
| Penn Mutual The company's state
ment fer the year ending December
81. 1904: was used as basis, and
every item was verified; the assets
were appraised by experts. the mort
cages and loans were found to he
amply margined. the real estate hold
ings We're examined by competent ex-
berts in the various localities who
found them to be $3S8.000 in excess
of the valuations claimed by the COM
pany. The report shows that the COM
pany is entitled to credit itself with
over quarter of a million dollars
more surplus than it claimed. The
examiners comment on this item is as
follows: 1.-The fact that the examina-
ton has developed a larger surplus
than the company claims in its annual
statement is an indication of the con-
sentative methods employed by the
company in the statement of the value
The report further shows that all
death claims are paid promptly on
receipt of proofs of loss. and that there
is not a single contested death claim
on the company's books.
In view of the present agitation as
to whom the surplus of a life insur-
ance company rightfully belongs. it is
Interesting to note that the examin
ers report this company to be purely
mutual in organization and practice.
and that all its policy-holders partici-
pate annually in surplus earnings. the
distribution taking the form of divi-
bends. which are used in reduction of
premiums or accumulated according
to the terms of the contract selected.
Under what are known as deferred
dividend or accumulated surplus poll
cies ''the dividends are apportioned
annually and the interests of the
policy holders are fully guarded
The reserve liability of the company
was calculated by both the Pennsyl
vania and Massachusetts departments.
and the report shows that in addition
to the legal requirements the COM
pany has voluntarily set aside 81, 062.-
6T9 in order to meet any possible con-
tlngencies in the way of lower interest
rates or excessive mortality
There never was anv question as to
| the strength and absolute integrity Of
! this old Philadelphia institution. and
its policy-holders. are to be congratu-