New-York tribune., 1906-12-31
IINSURANCE'S NEW ERA.
WILL BEGIN TOMORROW.
Armstrong Amendments Wsu WorS
Manu- Radical Reforms.

:. ~. raw Armstrong amendments to the
Insurance law will go into eTect Tomorrow ne
after mono of the Big Three can write more 'na'i
sl50 COO 600 of new business In any one year. AL
though tho New York Life. until recently at least
had an agency force capable OF wrft1ns as much q.
$500 ooo COO company has not written nan tha'
amount this year according TO the statement "auo
by official Of the company
All advances 70 agents. the Gauss of losses
amounting to many hundred thousands OF dollars
yearly, must cease The Eaui'aoie oiscoii-
tinued this practice last summer The New YORK
Life and the Mutual did not do so. however our'
according TO Opposition interests. employed the
advances in certain Instances TO pay the alleged
electioneering expenses of agents
Hereafter the amount of money a company may
expend to acquire new business is limited This
section will hit the life insur, agent hard. The
total expense must not exceed the loading of the
first years premiums. plus the mortality gains or
the first five years On rough average. II is esti-
mated that this will mean shrinkase OF between
one-nfth and one fourth OF the agents commits
sion.
Hereafter too on endowment policies. the law
limits the agent to per cent Of the renewal
premiums for nine years and on all other policies
to III per cent for nine years
Beginning o-uorrow. all the companies must
file with the State Superintendent OF Insurance de-
tailed REPORTS of their condition OF December 81
This will be a practical test of the publicity section
OF the Armstrong Law. They also must report the
dividends declared the sums held applicable to de-
ferrad dividend policies, the amount of their con-
tingency reserve their bank balances and profit
and-ioss sheets all in detail. They must furnish
lists of securities bought and sold. with the price
fuCtuatng. the profits losses. and the commits
sons paid on the transactions
They must account in detail, for all Legislative
expenses enc describe all real estate operations
and the nature of collateral bonds. Every death
claim. resisted or compromised. must be re-
ported with the reason In every case.
From tomorrow, every policy issued must con-
tain the fun contract between insurer and in
sured, to guard against ali trick policies. Do
ferred dividend policies cannot be issued hence
forward.
There be annual distribution OF the
plus. and the policyholder may receive his profits
In cash, permit them 70 accumulate or apply them
to additional insurance. The first distribution under
this section will be made year from to- morrow.
The name and compensation of every officer or
eTnploye receiving a salary OF &, 900 year
must be furnished hereafter
The Big Three no longer will be able to con.
serves The new law fixes sliding scale linn
itation. and, as the present surpluses of these
companies exceed the limitation, from for
ward the surplus will be applicable to dividends for
policyholders.
Beginning to morrow the various companies viii
have five years in which to sell all their holdings
Of stock. After that they may invest their funds
in high-class bonds and real estate loans only.
Superintendent Kelsey is considering suggestions
from the actuaries OF various companies to
notifications additions TO tho ordinary life pol
icy, the limited payment life, the endowment pol
icy and the term policy forms, the four standards
provided by the Armstrong committee.
certain British com panies declare that no English
Canadian company, as at present constituted,
can afford to do business in this state under the
new law.