New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-03-05
GUARDING LIFE INSURANCE.
Wide Scope of Duties of State Insurance
Department

To the Editor of The Tribune
Sir: The head of the Insurance Department OF
the State OF New-York In addition TO testimony
given before the Special Committee on Insurance
along the lines. has given out a statement
in which he says: THE fundamental idea OF In
surance legislation and supervision IN this and
other states has been to require preserve suf-
cent assets and reserve and trust funds proper
ton TO outstanding policies. 10 guarantee the safe
and full payment OF all Utilities to policyholders
That statement is all very WELL far it goes:
but the insurance departments IN other states have
not been satisfied with stopping at the line drawn
and intended to include all that considered
fundamental" by the Insurance Department. OF the
State OF New-York. They have evidently thought
that it was necessary 10 have as deep and broad
foundations for the protection Of the colossal bust
ness intended TO and for the interests
Of widows and orphans as for any known business
enterprise sacred trust
The history OF life insurance in this country
shows that the Insurance Department OF the State
of Massachusetts has always been wideawake, and
that 1t has originated legislation which has been
Of great value TO the policyholders in the COM
panies organized under the laws OF that state as
well as TO the companies themselves.
In the State of Connecticut the Insurance Depart
ment can Justly point with pride TO the service IL
has performed in years past. II has assumed that
It had duties to perform beyond being satisfied
that the companies solvent. and that the word
''solvency" did not include all that ''funda-
ment to make examinations and protect policy
holders against irregular, illegal and Improper
methods OF life insurance companies whose BUSH
ness is It? How are policyholders 10 find when
their interests are in jeopardy? Must they wait till
the Insurance Department is ready to declare a
company bankrupt before they given a word of
warning: and then find out that each must take
Of himself?
Because OF the general feeling that the Insurance
Department OF this state has not done all it could
to prevent irregularities in the companies under its
public desire to make mandatory laws rather than
leave important matters TO the discretion of the
department. 1t ought not TO be necessary to re-
quire by statute that life insurance companies shall
keep separate ledgers registers for the differently
worded policies issued. specify details for a
form of report to be used TO regulate statute
many other important matters; but IL Insurance
Department does not comprehend the situation il
may be necessary 10 do The statistics which
have been gathered from life insurance companies
have been altogether too general. The Insurance
Department should require. blank furnished by
the department, from every life insurance company
doing business In this state at the end and
every report giving list OF all the policies
the company has paid or settled for. that have
lapsed or been forfeited in the year then closing:
the date of the payment. the name and address OF
the insured, the amount paid in settlement the
kind OF policy, the age OF the insured when the
policy was insured. the number and amount OF
the premiums paid. the amount the dividends
paid TO the insured beneficiary when declared
the amount Of the dividends declared and deferred
With such a report published and sent TO every
policyhoder, comparisons could be made and COM
petition would settle vital questions which
Is not now possible 10 demonstrate
Albany. Feb %. 1906 S. W. ROWEIsIA