The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-09-04
KANSAS WANTS IN.
Would Take Part in Big Insurance
Investigation.

vention of insurance commissioners for
the purpose of investigating all OF the
country.
This Investigation says Mr.. Luling,
viii be one of the greatest importance
ever undertaken in the insurance world,
and to give the finding proper weight;
am of the opinion that the national
convention should select one actuary
from each state.''
The National Association of Insurance
Commissioners, of which Mr.. Luiing Is
member, is composed of all the 1nsur-
ance commissioners of the United States.
The convention this month is to be held
in the White Mountains of New damp-
shire. The proposition for the selection
of a national committee Of actuaries for
the purpose of a searching investiga-
ton of the condition of all the great
life insurance companies has been
brought about by the recent startling
revelations concerning the Equitable
Life of New York.
OF course the Equitable will be one
of the companies examined. This COM
pany does big Kansas business. The
number of Equitable policies in Kansas
on December 81, 1904, was 1858, repre-
! senting Sc, 49,, $50. During the year the
company paid % death losses aggregat-
ing $75,058. During 1904 the company
was writing business at the rate of
policies a day.
The Equitable business. however, is
not nearly as large as that OF the New
York Life, which will also be investi-
gated. This company had in effect in
Kansas on December 81, 1904, 10, ISL
| policies, representing SIS, 310,136 in in
surance.
| The Mutual Life of New York is not
| far behind on Kansas business with
total of 1850 policies representing about
| $12, 900, 600.
1t is probable that the big eastern in
surance companies are carrying in Kan
sas the enormous total OF about
| 500, 0000 900 in life insurance, which
ought to be enough, it would seem. to
entitle Kansas to a place on the inves-
tigation committee.
| Speaking of the probable effect of
such an investigation on the business
of these big life insurance companies,
Superintendent Luling says:
| Instead of being a bad thing for
| these companies to be Investigated, it
| is the best thing that can happen to
| them. Since the reorganization of the
| Equitable commenced, its business has
been steadily increasing. Any life inSur-
ance company which is honestly con-
| Quoted welcomes an stigation. for
it has nothing to conceal and an in
vestigation assures the public that it
| is doing business as it should.
| There is not and never was any
! trouble with the Equitable, SO far as
| the policy holders were concerned. All
| of these old companies put an immense
| loading on their premiums for expenses,
| necessary. A small company may act
ualIy need all itsSexpense loading, but
i this is not true of=the big conern which
| does business much cheaper. The result
is that the big-conpanie6 have accum-
ulated immense surplus funds. Now
in the case of the Equitable, which is
| a stock company anG not a mutual con-
Germ, if the company goes ahead and
carries out strictly the terms of its pol
Iicies. it would appear that it is none OF
the business of the policy holder what
becomes of the surplus. But that is the
question which has been agitated, and
the officers of the company have been
criticised for the way in which they
have spent the surplus. Of course in a
mutual company where all thu surplus
is supposed to belong TO the policy hold
ers it is different.
i $50 an investigation of the condition
of these big companies will be produc-
| tive Of great good to the companies,
provided they have been honestly ad-
ninistered, and the companies approve
of the plan of the state insurance
superintendent to take charge of the
work"
The difficulties of the old line COM
panies in the east, however, have given
the smaller western companies great
stimulus, and it is known that most OF
1 them are putting forth extraordinary
/ efforts to get away business from the
/ old concerns. They are hammering
/ away on the rotten management
| WHICH Is pOpuldFly SuppOS0o bO exist AL
the big eastern concerns, and this bat
tering is likely to have great effect I'M
/ less the old eastern companies can
square themselves in some spectacular
way before the public. The sweeping
examination of their affairs by the ma
tfonal association of insurance superin-
tendents affords them the opportunity
they need.
It Is not likely that Insurance Super
intendent Luling will be able to attend
the national meeting in New Hamp-
shire, as the state of Kansas places nc
funds at the disposal of its superintend-
ent for this purpose.
81 can't afford to go back there and
lpay my own expenses, "a says Mr.. Luling
land SO the chances are that I won't
go, though I realize that the meeting
is of the greatest Importance to the in
surance situation of the country. Most
states appropriate a special fund tc
enable the superintendent to represent
them at this annual meeting, but Kan
sas Is one of the few which have so fal
not done this
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