Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1905-04-28
INSURANCE COMPANIES
MUST Obey The law

MUST Obey THE Law
A Bismarck correspondent Of the
twin city papers says: 2 /.
life and fire insurance companies,
insurance companies Of all kinds,
have to do business night or not a all
In North Dakota" says b. G. Cooper,
state insurance commissioner.
For some time without flourish Of
trumpets, the commissioner has been
looking into the methods employed by
the different companies transacting
business III this state AS d result
two companies have already been de-
barred from the state, and others are
on the spit. (2s
Recently the Equitable Mutual Fire
and the Minnesota Mutual, both Of st.
Paul, were debarred from this state.
The first named failed to make any
statement to the commissioner, and
the other was debarred on the same
grounds that banished it from Mime.
sofa. a ...,.
The latest company to come under
the ban Is the Bankers Union Of the
World. It has its head offices IN
Omaha, and P. G. Spinney is president.
Nebraska has refused to give the COM
pany a license, and this is the chief
reason for refusing it one in this state.
Another reason Is found in the belief
that Mr.. Spinney has an insurance
record that is not what 1t should be,
and Mr.. Cooper is not taking any
chances. .....s -~ q. ,.r.....ts ..... Ii
Two important cases have been
brought to the attention of Mr.. Cooper,
and he Is working on them now.
One involves a ten-year distribution
deposit policy in the Mutual Reserve
Fund Life Of New York for $1,000, the
policyholder being John Griffin of
Grand Forks. The policy has been run
ming for twelve years, and the annual
premium UP to the end of the ten year
period amounted to $34.6S.
| After the expiration of the ten years
the policy holder is supposed to pay
an assessment stipulated by the exc.
cutive committee of the company and
based upon the mortuary conditions
imposed in the policy.
The policyholder says he was led 10
believe that the rate would remain the
same, or would at least not be largely
increased. He also expected that at
the expiration of the tensyear period
he would be able to take out paid.
up policy or get cash settlement.
| A careful reading of the policy, how.
ever, develops the fact that there is
no provision whatever to issue a paid.
up policy Of insurance at any time in
the fifteen years. The premiums, too,
have increased at remarkable rate.
The policyholder, becoming weary
of the large premium, wrote, asking
for a cash settlement, but was in.
formed In a letter now in the posses
| sion Of the insurance commissioner
that no CASH settlement would be
made until at the expiration of the
fifteen-year period. It develops that If
the holder reuses to pay his premiums
In any year up to the end of the
fifteenth he forfeits everything, as
there Is absolutely no provision for
the issuance of paid-up insurance
policy before that time.
| The meat of the cocoanut seems TO
be that the premiums at the end of
the ten-year period will be made 50
high that the insured will become
weary of paying them and will allow
the policy to lapse. This is made pos
sible by the fact that. the levy1ng of
! all assessments after ten years is en-
tirely in the hands of the executive
committee of the company.
The commissioner is looking care.
fully into the dealings of this CON-
pany, and action will be taken soou.
Another concern that is being in
vestigated is the Indiana State Life.
Every company doing business in the
state will be carefully watched to
safeguard policy holders from fraud.