The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-29

vanderposl 70 The STATE Insurance De-
partment. The statement, together with
the Vanderpoel report, will be sent TO the
7e,ono rc!!cyhc!de.s 0! the company.
In regard to tho criticism Of delay In
payment Of death claims, tho company
contends that the Dolby exists principally
In the case OF assessment policies. Up to
three years ago tho company was pass
the hat concern" exclusively. Then II was
reinoorporated as an old line company
and quit getting new assessment business.
1t has, however, large number OF assess-
'nef,t policies.
These. according to vice-President and
Actuary Eldridge, are computed every
sixty days according to the amount Of
claims maturing In the preceding sixty
days. This fact alone. he says. 10 respon-
sible for the delay In the payment Of assess-
ment policies, but, In any event, 10 per cent.
Is paid promptly on receipt Of proofs OF
death.
Particular exception Is taken to the ortiz
cism that the company forced compromise
Of claims on grounds Of alleged misstate-
ment in applications, incompetence Of
insured, misrepresentation In age. lapse
Of policy and suicide. The Vanderpoel
report showed that on these accounts In
surance at one time amounting to 1929
9So7s netted the insured S722, $3.50 less
Full information Is given as to all claims
settled at less than their face. This in
formation has never before, TO- our knowl-
edge, been compiled or published by any
department regarding any legal reserve
peny To pro Ms en an oeay Se1sd list
from which its 2olicyholders can secure
that one of these claims was improperly
settled. As almost the entire amount
belongs to the assessment branch Of the
business, had the company paid amounts
not legally or justly due the members
must have been called upon TO pay add
tional assessments therefor. The manage
ment's obligation to protect living members
as seeing that all just claims are paid
The statement Is silent concerning the
vanderpoel exposure Of the transaction IN
which the company on taking over insur-
ance OF the now defunct Northwestern
Life Assurances Company paid J to certain
q commission Of SPIT ,o0o67. The omission
was called to the attention OF Mr.. Eldridge.
He sW Said n.,d tho ooruis.,on to De Witt G.
Merriam Of Chicago. He had CONTRACT
with us to bring in insurance. He ohered
,ls business from several companies which
we refused. But when he brought the
! business Of the Northwestern We took 1t.
| The only difference between the transaction
and ordinary new business was that we
| it. Furthermore, the commission included
a guarantee on the part OF MIR, Merriam 20
| protect US against certain claims fled against
us by tho receiver Of the Northwestern. !,
"The transaction was. completed ana
appeared on the books OF the company on
| - xlnto nf No NJ tho Inallra nee
Department. Dec. 81, 1901. 1t was not con-
sidered important enough for the examiner
to mention then. ! am certain that IL
would not be mentioned now and that no
attention would be paid TO other alleged
irregularities were it not for the hubbub
in other Parts of the insurance world.
Mr.. Eldridge was inclined to ridicule
the Vanderpoel reports criticism OF the
listing Of sls2 1892 In judgments against
the company in the liability schedule en-
titled Salaries, rents. once exp issees
medical and legal fees due or accrued,
slsi.913.25."
1The amount OF the judgments. he said,
was included in the liabilities of the COM
pany, and can not see that 1t makes any
difference whether the amount Ia listed as
| judgments or accounts, so long as the com
! rany shows ii owes the money. AS a mater
Of TACT, though 1t is by no means certain
| even that the company owes the amount
since an appeal has been taken IRON the
judgments.
MI. Eldridge went on to explain that the
company was plunged into litigation some
time ago over raising the rate on assess :,
| nent policies. Suits we're brought IN han
Of the States Of the Union and in many
European countries. The plaintiffs alleged
MISREPRESENTATION and breach OF contract.
The company was successful everywhere
except in North Carolina and England
| II was in these places that the Judgments
agrregating sls2, 1882 we're secured.