New-York tribune., 1905-11-05
1ySI7R4NCE LAWS NEEDED
Soys Only Three Kinds Of Policies
Should Be 4UozCed.
ra,.n- az ma Tribune.

,ht Editor OF The Tribune.
~ u Judging from what have seen in the
ff.,srs the legislative committee which is IN
r.trstfnr the largest life insurance companies
- sts:e and also In the country for the pur-
J" 20 suggesting legislation which will relieve
- the most sacred of business trusts OF sons
o - .T Of the evils which those who are ao-
H-ssts-ine the trusts do not seem TO realize VIII
non have al me in1o4 iii''0-i -
2,oee of its work
'.tssrs are not supposed TO know what lesisla-
= -ha committee will suggest TO overcome inc
u-,,srfties and nismanagement alreacy uncoV-
- - hut the writer would most respectfully SUP
To- .e- suggestions for the consideration OF all
Interested . ,,,oh
: -, under investigation has issued over four
.5rsd kinds of policies When 4 policy ceased 10
:. .,l,r5nE they issued another fashion. becauss
"a the great variety Of policies onered 10 ehe puO-
"a ~. brightest OF the business men have oeen
daosIyed end imposed upon They nave .aAeh %.
,.,.s and found that they had been deceived; 'hat
= .1f.v the policy they held did not give them
- advantage over all the other pohcyholoefs
hsch thev supposed il did and have gone Oh P0'
W ~ n-en1iurns on the policy held rather tnan
r.s-5ece the payment or payments made before
,bev discovered that the representations VI 'i''
,.r and rnscrupulous agent were untrue
,,es+ mystery has been made OF the life insur-
-. business which should not exist. and 1t VIII
,,,,n,,e so long as the companies are aAo"eo 20
,seus as many varieties OF policies as the fniiu
c-asty man can suggest The management Vi
ne. insurance companies and all persons seehiHs
- ret policies giving them some advantage owe.
+,s- ,aljcvholders in the same company snoulo
=. -,adA 70 understand that hereafter all pohcy-
BIDDERS are TO be equtably treated; that there WIZ
he No such thing IN life insurance as grao Dug
or bargain counter and mat fbe SO WIDOWS and
orphans will be relieved Of the element Oh uHcei-
felnt.. h o-a practically only three kinds Of life
insurance policies. and these three cover al ma
Is E 5esirabje in life insurance. All other klnos i
sboui6 be prohibited. The three kinds of policies
referred 10 Eb9e %5 fe policy requiring the annual
nerfaps quarterly. payment of the premium; a,,,,
ali the premiums TO be paid in one, hve ten fi'eeh
oI rb;r60An endowment policy, the premium pay
nents 10 be made annually or a limited term To
suit the polcyholder. .,..,,s =. ,,-ov,dss bv
the state (alI the States, If possiblel' an otnsr
forms prohibited, and might provide for the par
dends-in all the profits OF the company, 70 pc ois
tributed among the poliGyholoers s acGeteiiis nn4
psrticipa1tng a plan nea1a ANNUALLY OF a' pei''''
T4IifoTm reports should be required from every
company doing business in the State, SO that any
intelligent person can make comparisons lne Same
as il is now possible to do with bank reports. l.,
The reports which have been made by life IN
surance companies have not given enough aenntfe re
~ expenses 10 premium income has been given.
has been misleading. in so far as the report w.
Intended to show economy of MANAGEMENT II al.e
premium income be large on account OF invest
insurance the expense ratio must OF heGesSs @
he small as compared with the premium income
Under insurance FOR protection only.
Endowment policies call for heavy resefVSs, eF Ts
term policies for very little. and the ratio OF re-
serve to each 81 ea0 of insurance in force means
nothing unless the kind OF insurance policies ana
heir duration is known. The surplus OF life IN
surarce companies. has been reported. has not
been calculated in a manner 70 give conhdence
that IT was Correct The holders Of certain kinds
Of policies have rights in what Is called surplus %
" hch will some dav become q liability
The companies should be required TO keep theII I.
accounts and send policyhclders reports; SO that
ba
ing such a report 10 be able to tell what the COM
pan, he IS insured in is doing for him, and what
other corananies are doing for those holding the
same kind Of policies. b W. HoN fS1i@
Albany, Oct. 81. 1905.