The Minneapolis journal., 1905-04-26

Special to The Journal.
] Bismarck, N. D., April 26.--'Life and fire
Insurance companies insurance companies of all
kinds, have to do business right or not at all
in North Dakota" says E. c. Cooper state in
surance commissioner.
For some time, without flourish of trumpets,
the commissioner has been looking into the
methods employed by the different companies
transacting business in this state. AS result
two companies have already been debarred from
the state. and others are on the spit
Recently the Equitable Mutual Fire and the
Minnesota Mutual, both Of St. Paul, were de-
barred from this state. The first named failed
to make any statement to the commissioner,
and the other debarred on the grounds
that banshed it from Minnesota
The latest company to come under the ban is
the Bankers Union of the World. 1t has its
president. Nebraska has refused to give the
company license. and this is the chief reason
for refusing it one in this state. Another rea-
son is found in the belief that Mr.. Spinney
has an insurance record that Is not what it
should be, and Mr.. Cooper is not taking any
chances. :
the attention Of Mr.. Cooper, and he is working
on them NOW.
One involves ten-year distribution deposit
policy in the Mutual Reserve Fund Life of New
York for $1,000, the policyholder being John
Griffin Of Grand Forks The policy has been
running for twelve years, and the annual pre-
MUM up to the end of the ten-year period
After the expiration of the ten years the
policyholder is supposed to pay an assessment
stipulated by the executive committee of the
company and based upon the mortuary conditions
imposed in the policy
: The policyholder says he was led to believe
that the rate would remain the same, or would
at least not be largely increased. He also ex-
pected that at the expiration Of the ten-year
period he would be able to take out paid-up
policy get cash settlement
A careful reading Of the policy, however, de-
velops the fact that there is no provision what
ever to issue a paid-up policy Of insurance at
any time in the fifteen years. The premiums,
too. have increased at remarkable rate. ,-
The policyholder becoming weary of the large
premium. wrote. asking for cash settlement but
was informed in letter now in the possession
of the insurance commissioner that cash
settlement would be made until at the expra-
tion Of the fifteen-year period. 1t develops that
If the holder refuses to pay his premiums in
any year up to the end Of the fifteenth he for
feits every thing. as there is absolutely pro-
vision for the Issuance of a paid-up insurance
! policy before that time -
+ The meat in the cocoanut seems to be that
the premiums at the end Of the ten-year period
will be made so high that the insured will
become weary of paying them and will allow the
policy to- lapse. This is made possible by the
fact that the levying Of all assessments after
ten years is entirely in the hands of the executive
committee of the company.
The commissioner is looking carefully into the
dealings Of this company, and action will be
taken soon.
Another concern that is being investigated is
the Indiana State Life. Every company doing
business in the state will be carefully watched
to safeguard polcyholders from fraud.