The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-11-09
INSURANCE QUIZ
Is ON AGAIN
Difference Between Industrial and
Ordinary Life.
FORMER MORE EXPENSIVE
AcTUARY MecLlNTocK OF MU
TUAL ON STAND.

nj EW YORK. Nov. SIN the testi-
mony of John r. Hegeman. pres
ident of the Metropolitan Life In
surance company. before the Insurance
-igating committee, upon the re-
sumption of the insurance investigation
today, IL was brought out that indus
trial insurance was considerably more
extensive than OJher forms of life in
surance and MI Hegeman, after class
ms industrial insurance as retail and
The ordinary life as wholesale, illus
trated the fact by an example in which
for stated age it was shown that for
a $1,000 policy of ordinary life the Met
roTolitan charged $685. annually. while
for 1884, the nearest amount for the
stated age under the industrial plan
$500 was charged
Mr.. Hegeman was on the stand the
| greater part of the afternoon and his
testimony was along the line of the
amount OF the cOmpany's increase in
business.
Actuary on Stand.
AT the morning session Emory Me
Cllntock, actuary of the Mutual Life
insurance company. who has been ex-
amined in part at previous sessions,
was called and continued his testimony
on technical insurance.
In answer to a question Mr. McClin-
/ took could not remember a case in
which the actuaTy's department has
ever been consulted by the officers of
the company as To the amount of
money TO be expended for new BUSH
ness. He was of the opinion that the
| agents commissions We're larger for
the endowment policies than on an or
binary life policy with annual divi-
dends.
MI. Hughes asked Mr.. McClintock:
IN 1893 the amount realized by the
company was $5.56S. SCI and the amount
| OF dividends paid was $115.047, in 1904
the amount realized was $6,62461T, and
| the amount of dividends paid 1898 504
why, when the amount realized was
over $l,000OG0 more, was the amount
set aside for actual dividends nearly
100000 less"
Mr.. McClintock said that the reduc-
ton of interest must be taken into ac-
count He also said that as the esti-
| mate for the years earnings was made
IN November and the dividends 10 be-
paid were calculated on the estimate,
| % was impossible to get accurate re-
suits
In reply to questions, Mr.. McClmtock
said that one of the factors considered
in computing the dividends was tho
loading Of The premiums So rs 10
/ provide funds for the conduct of the
company. What remained % the
'iOadinss' after payment of expenses,
/ ne said, was devoted 10 dividends The
7 amount Of the loading was csIimat ed
by the eNpericncc OF previous years.
Cost of New Business.
Mr. AlcClmtock was asked if there
I was any way The cost OF procuring
new business could be Iessened He
replied that the company might adopt
new method OF valuation. He said
the ratio of expense to the total income
of the Mutual Life Insurance company
was % per cent for the year 1904 This.
b. said. Is also true Of the New York
Life and the Equitable Life Assurance
| society. In smaller companies the ra-
ito was much lower. i'm some instances
, as low as Is or IA per cent.
The ratio of expenses To the amount
paid 10 policy holders of the Mutual
was shown 10 be- 20 per cent. In The
New York Life it is the same, while IL
[ the Equitable it is but 43 per cent. In
some smaller companies it is as low
as - and 80 per cent.
Following AR. McClintock John =
HeSeman, president of the Metropol-
itan Life Insurance company, was
called TO continue his testimony where
ne stopped two weeks or more ago. An
I sWeFinS Mr.. Hughes, who wished il for
/ the record, Mr.. Hegemdn told at great
I er length than his previous testimony
! the growth of his company. In 1887
/ the company had a surplus of $500. 1872,
and al the end of 1894 it was S14.S35. ~.
At the end Of 1887 the outstanding in
surance was $l5205l,077, of which Sl47.-
: ,5S.2S1 was industrial At the end of
/ 1904 the outstanding Insurance was 81
I 40, 42l ,2Sl, OF which 81 ,127 SS9. 229 was
/ industrial The premium paid i'm 1887
/ amounted to $5,61S7 G1, and in 1904, $780,
SJS,924.
Witness then identified a table Of
! weekly rates for various ares, and said
the aggregate rates for a year of in
/ dust rial insurance were greater than
ordinary life because the Industrial was
retail insurance. while the @. dinary
might be characterized as Wholesale.
An example was taken at an age Of -
years, and IL was shown that the Met.
r0kolitan sold a 81 goo ordinary life pol
icy for Sl6.55 annually, while for 1854
worth of industrial insurance $3l.20 was