The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-08-04

ESP EC|ALLY BAD
Insurance Commissioner
Criticizes Company.
Mutual Reserve Life Insurance Com.
pany's Condemnation Under
the Circumstances is
Ruin.

Insurance Commissioner Young said
yesterday that he has been for some
time receiving inquiries in regard to
the Mutual Reserve Life Insurance
Company, of New York, formerly The
Mutual Reserve Fund Life Association,
and that for the past month or so
he had advised different citizens
throughout the State that the New
York Insurance Department was eX-
amining into the affairs of this COM
pany, and it would be well to await
the result of this examination. The
New York Department has sent Com
missioner Young a copy of the report
of this examination, and he wishes to
say for the benefit of the different citi-
zens interested in this company as
policyhoders, that the examination
has been very thorough, and among
other things they find the company
has only $3S,492.16 surplus, while in
their last report as of December 31st,
1904, they claimed $359,211.5S and
they included under the item. all
other liabilities, etc, the sum of
$1S2.76I92 judgments against the
company.
The report" Commissioners
Young said, Shows the death
claims outstanding and unpaid
$S31,42959 instead of 1896, 704.31, as
given in the company's report. This
is specially significant In view of the
fact that the company has established
a reputation for resisting claims, seal
ing them, and taking every turn to
defeat their collection.
The report finds that the sinking
fund that should have been laid aside
as directed by the Insurance Depart
ment to protect the policyhOlderS for
the amount borrowed from the reserve
or emergency fund for purchase OF
home office leasehold property is only
$14.948.76, While it should be $780,
10000
The report says: Making due al
lowance for the time it may occupy
to thoroughly investigate all ques-
tionable death claims, [ think that as
the result of this examination it is
quite clearly in evidence that the COM
pany has adopted a settled policy, of
delay in Withholding the approval
necessary to constitute an admission
by it of the receipt of satisfactory evil
dence of death in the case OF all
claims under policies or certificates
issued while the company was operat-
ing under article of the Insurance
Law. From the date of such appro-
val ninety days is the specified time
within which payment is to be made.
The average period between the ming
of proofs of death which were upon
Investigation ultimately found to be
valid claims, is so lengthy as to prop
erly subject the company to the sever
est criticism in its treatment of these
beneficiaries, many of whom must be
subjected to no little suffering and
distress by this seemingly inexcusable
on the Companys part
in the. payment of its just debts *t0
policyholderS." s...'
There are many other criticisms
of the record of the company in the
report" said COMMISSIONS Young,
"such as their deal with the North
western Life Assurance Company, put
| do not deem it necessary to go into
them in detail The company is
by it's officers and in such way as
to cause the public to lose confidence
in them
'"The Weekly Underwater, one of
the best and most reliable insurance
journals published, in commenting on
this report says, No doubt the de-
partment has been as lenient as it
ought to be, but the seal of its con-
demnation under the circumstances is
ruin
.The record of the company in this
State is especially bad. Since the for
nation of this departemnt in 1899, the
company has furnished a majority OF
the suits about insurance matters in
North Carolina. The company mas
sent out a circular letter reviewing
this report ami attempting to eX-
plain away it's criticisings but it would
he we'll for our citizens not to be
deceived by this circular however
plausible it may read.