Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1905-03-01

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be the number who will receive their
insurance at actual cost, and the fewer
viii be the number of those deprived
of their overpayments and share of the
profits.
Against Deferred Dividends.
The deferred dividend policy offers
the policyholder not one single advan
t1ge, not granted by the annual divi
dend policy AS matter of fact, the
annual dividend contract enables the
policyholders to obtain everything
granted by the deferred dividend con
tract, with the added advantage of the
Iolicyholder having absolute control OF
his overpayments and accumulation
all the time, and free from the forfeit,
ures or confscatiOns imposed under
| the deferred dividend contract.
1T is a popular error that the
strength of a life insurance company
is graded by its size and enormous
amount of assets. All a company
needs as to size to give safe insurance.
is such a number of policyholders and
such an amount of insurance in force,
as to enable the application of the law
of averages according to the mortality
table.
Every life insurance company, I'M
der the law, is required to set aside
and reserve for the security of every
contract it assumes, the same amount
every other company reserves for a
like contract. So that the larger the
assets, the larger the liability for re-
serve, which cannot be encroached up
on except for the policy for which it is
held. Where the assets largely ex.
coed the liabilities for reserve require
ments, leaving a large surplus, that
very surplus is an evidence of unfair
treatment of the policyholders, by the
Withholding from them their overpay-
ments accumulated out of their funds.
Surplus Not Strength.
"Surplus-in its large accumulation
is not an evidence of strength and il
is not an element of security to a new
policyholder, for ii belongs to those
policyholders from whose premium
payments it has been derived; it OF.
fers nothing to the new man who can
claim an interest only in such surplus
as may come from the payment and ar
emulation of his own funds.
According to the sworn statements
of the Equitable Life Assurance so
ciety filed with the department of in.
surance Monday, said company has a
surplus -overpayments of policyhold-
ers-apounting to the enormous sum
of S79, 179, 629.S1. And this is only the
surplus of one company. The agere.
gate surplus Of the life insurance com.
panies transacting business in this
state amounts to over $500, 000, 600, for
which the officers Of these companies
for the past IS years-have
been accountable to no one, and which
is directly responsible for all the evils
that now exist in the life insurance
business today All scandal or evil
talked Of in the life insurance business
would have been impossible of occur
ence but for this vast surplus accumu
lation, and when companies have been
forced back into the straight and mar.
row path of annual accounting and dis
tribution, are not likely to occur again.
Hoped to Win Case.
The discussion and litigation of the
surplus question in Wisconsin. has
created more interest in insurance cir,
cles and among the people, than any
other question ever raised concerning
life insurance not only in this state
but throughout the country. had
hoped there would be restored to the
policyholders of those mutual life in,
surance companies, the overpayments
that justly belong to them, and that
the deferred dividend contract, which
was vicious in its inception and is vic.
Gus in practice, would be forever abol-
lshed. ! will now appeal to the Iegis
lature of Wisconsin and endeavor to
convince them Of the injustice of the
deferred dividend contract, so that
some legislation will be enacted aboi.
ishing this gamble for all time.
Sincere thanks are due to those
who have been so faithful and assisted
IN prosecuting the case. The advice
and testimony of DR.. William A.
Fricke, former insurance commission.
er OF Wisconsin, has been of inestima,
Bile value. The services of Attorney
General Sturdevant, and the able and
torcible argument Of Senator julius 2.
Roehr-who voluntarily rendered his
services gratuitously-in presenting
the case to the circuit and supreme
courts, entitled them both to words of
praise and commentator. And for
the valuable assistance rendered bv
the force of the insurance department.
who, while this litigation was in prog.
ress worked many extra hours, l must
express deep gratitude"
MAY" Does Not Mean unjust"
The whole contention conferred
around the word may" as used in the
statute, the insurance commissioner
contending that it would be construed
as mandatory and the company main,
tanning that it was permissive.
The chief justice on this point has
this to say:
THE principal ground urged in sup
port of the judgment of the trial, is
that the issuance of such deferred in
surance policies, TO citizens of this
state, by the plaintiff, and such other
companies, was in violation Of the stat
utes of this state and particularly the
section which declares, that every life
insurance corporation doing business
in this state upon the principle of NUT