The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1905-08-01
MUTUALREsERvE INVESTIGATION

Irregularities of startling nature
have been uncovered as the result of
an examination of the Mutual Re
serve Fund Life Insurance association
of New York city made by Chief Elk
aminer Isaac Vanderpoel of the state
department OF insurance. Mr.. Wander
poel's report In part says:
THE premium paid by the North
western Life Assurance company to
the Mutual Reserve Fund Life asso-
citation as consideration for the lat
ter's assuming such liability as may
have been transferred to it by the
former company was $290,647.21. Sub
sequently a commission was paid by
the Mutual Reserve Fund Life asso-
citation of $277, 666.6T to certain par
ties for delivering to it such portion Of
the membership of the Northwestern
Life as the Mutual Reserve fund took
over by way Of SO called reinsurance.
"As this membership has since the
date of it's reinsurance been placed in
a separate class by itself, paying its
current mortality as class, fail to
see what benefit this membership de-
rived by a transfer for which it gave
consideration to the Mutual Reserve
fund of nearly 100000
1.-The commission paid by the Mutual
Reserve fund for securing the mem
bership of this association never seems
to have been received by it. The re
ceiver's reports since the reinsurance
was effected show no revenue from
this source. The commission went to
third parties, and l forward you here
with copies of contracts and certain
testimony taken during the examina-
ton which viii lay before you the ma
ture of the whole transaction so far
as am able to present it to you.
"The average period elapsing be.
tween the filing of proofs of death.
which We're upon Investigation ulti-
mately found to be valid claims, is so
lengthy as to properly subject the
company to the severest criticism in
it's treatment of these beneficiaries
many Of whom must be subjected to
no little suffering and distress by this
seemingly inexcusable procrastination
on the eompany's part in the payment
of its Just debts to policy holders.
In liabilities as they are returned
in the company's annual statement for
1904, is an item of $1S4, 913.25, stated
to be a liability ON account of salaries,
rents, office expenses, taxes, bills, ac-
| counts bonuses, commissions, medical
and legal fees due or accrued. $1S4,-
1925 The language quoted is that
used in the blank form for annual
/ statement returns of life insurance
companies. In making up its state
ment the company has not hesitated
to insert in writing such additions to
the printed form as might be neces-
sary to fuzzy describe the nature of
any item to be returned by it and not
covered or provided for in the stereo-
i typed or convention blank at present
! in use.
"Of the S1S4,913,25 reported by the
| company in its last annual statement
as being due or accrued for salaries.
rents, Office expenses, taxes, bills, ac-
| counts. etc, as set forth above, 1882
| 1912 consisted Of judgments entered
against this company / am con
strained to believe that the return Of
this item after the manner stated could
not have been the result Of an mad
vertence, and certainly constituted q
concealment of fact SUFFICIENT to rem
der the company's sworn statment for
1904 materially inaccurate in its fail
ure to return these judgments under
| their appropriate title"