The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1906-09-21
PROTECTION FOR
POLICY HOLDERS
HON. ALBERT /. COLE URGES
MEASURES TO MAKE lNSuR.
ANcE POLICIES ABSOLUTELY
SAFE.

Hon. Albert L. Cole devoted con-
siderable portion of a recent speech
TO the consideration of the problem
of how best 10 protect the interest OF
policy holders He said:
Until a couple OF years ago most
| people believed that a life insurance
| policy was a good form Of investment.
| There was also general national pride
in the size and strength of our great
American life insurance companies
The recent disclosures as TO the scan
daIous business methods Of some OF
the Eastern life insurance companies
have changed all this. Many policy
/ holders have allowed their policies to
| lapse. comparatively little new bus
mess has been written, and the big
companies have become a subject OF
| criticism. gibes and sarcasm instead
Of praise and pride.
1T would be a serious misfortune
for the country if this were carried
too far A life insurance policy in
properly managed company is, for
| most families, valuable species OF
saving. If the attack upon life insur-
ance companies generally becQmes sc
fierce that the people acquire per-
manent distrust OF all life insurance
and cease to insure their lives, one
of the most valuable instrumentalities
for thrift will have been eliminated
from our national life. If the attack
is carried so far as TO effect the SOL
vency of the companies, the resulting
calamity will be appalling.
1T is the part of wise statesman
ship to so handle the present situa-
ton:
I'D That the solvency Of the ex-
listing institutions should not be i'm
perilled.
"(2) That the companies which
have not been guilty Of abuses should
not be made to suffer along with
those of a different character
"(3) That the popularity Of life
insurance as family protection may
be preserved, and
"(4) That it may be made safe so
that those who invest their money in
il may not be deceived or disap-
pointed.
4 do not think that these objects
are to be accomplished by change
. Of management of the companies
alone. I am afraid that even if the
policy holders participate in the selec-
ton Of trustees, as they have not
heretofore done, the trustees OF their
selection. however fair their repute,
will find il difficult and perhaps i'm
practicable TO give that intimate su'
pervisory attention to the several com
7 panies' affairs which, in the long run,
is essential If evils are not 10 creep in.
: TO secure permanent results, We
: shall have 10 have continued regula-
ton and supervision by the state We
think We have discovered some Of the
sources OF the evil ELtravagant sal
: aries. reckless expenditures, and the
, use Of trust funds for speculative pur-
Troses and private gain, have been en-
eouraged IN the opinion Of experts By
? the accumulation OF great SURPRISES
needlessIv exacted, from policy hold
: ers. Legislation requiring al least the
: sppOrtiocue1t among policy holder;
=, OF their excess payments at frequent
: intervals will check some Of the
troubles. But after awhile they vii
/ return again IN some other shape IN
less constant vigilance is employed
/ The state owes il To its people, TO ii
0 self insure the financial Institutions
7 ( within its borders. The average cIti
. zen has not the time nor the facilitie:
: for personal investigations. The state
: must assume the task Its methods
Of Investigation should be so complete
: that its license issued TO an insurance
, company or bank, should be equiv
0 aIent TO q guaranty that it is entitled
) TO public confidence. An insuranc:
company dishonesty or incompetent
, " managed, or q bank becomes insol
. vent is a public disaster CT widt
: reaching consequence, and should b.
made an impossibility. This can b
ACCOMPLISHED in one way, and in one
U way only, and that is by system o.
5 the highest publicity. The insurance
departments of the several state
should devise and enforce the use O
such forms Of reports that the condi
ton OF the several companies as Il
assets, liabilities and expenses, should
be clearly disclosed. and should CO
" operate one with the other so that tn
cost of investigations from time Z
It time may be minimized- The reveal
/; ticns of the recent investigation com
+ mittees would have come years ag
y had such plan been heretofor
A adopted. But the vastness Of III
work for the insurance department
Of any one state has prevented it
e being done in the absence of cQopera
ton, and the reports furnished hav
served to conceal rather than shov
the truth. In other words, | thin
publicity is the great safeguard"