The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-01-05
10 BRIEN TALKS ON
LIFE INSURANCE.
STATE COMMISSIONER HANDLES
QUESTION WITHOUT GLOVES.
In Address Before Ramsey County Bar
Association He Compares Deferred
Dividend System to Gambling, and
Makes Plea FOR overhauling Of In
dustrial Insurance.

7 + p ! - i ] g = r. . f Il
T. d. o 'Brien, state insurance COM
missioner, addressed the Ramsey County
Bar association at the ST. Paul Com
mercial club last evening on The In
surance Question: Mr.. o 'Brien han
died the question without gloves. He
decried the deferred-dividend system in
life insurance, comparing it to gam
bling. He also made a demand for the
overhauling of industrial insurance. His
terest.
The insurance scandals show the
necessity Of government control of all
large corporations, said Mr.. O'Brien.
Few realize the magnitude Of forty
five, level-premium life insurance COM
panies licensed to do business, having
combined assets of $2,469, lac, ia
sum almost as great as that Of the COM
bined savings-bankl deposits in the
the assessment and fraternal companies
doing business in the state, which swell
the number to over one hundred. Z
Increase for Fraternals. 5
The present situation has resulted
N decided. increase in business. for
the fraternal companies. This is in
itself serious situation; for, while ]
belleve that the old-line companies have
charged too much for insurance, the
fraternal companies, on the other hand
charge too little. y ~
A thing which has made the accu-
mutation of surplus possible lis the de-
ferred dividend policy. I do not con-
slder this form Of policy much better
than the tontine policy, which has been
eondemned as gambling policy, and nd
the present trouble. A man takes a
twenty-year deferred dividend policy.
The contract guarantees him the face
value of the policy in case it becomes
a claim. Provided he pays all the
| premiums and survives the term of
| the policy he is promised a share in the
earnings. if he lets it lapse he loses
all claim to participating in the profits
and gets only such sum or paid-up in
suranee as the non-forfeiture clause of
the contract provides for. ...- ...
I "Certainly not more than one in
three policyholders eventually partici
| pate in these deferred dividends, anC
these are compelled to take just what
the, company appropriates to them as
their shares There is no redress fo1
the policyholder who may think he has
not got his dues. But few understand
the intricacies Of the contract and art
completely at the mercy of the com
pany. There is no appeal to the courts
| AS tnS laws VI NeW lOIh, DIS VIGIL dS IL
some other states. make it necessary
for the polio yholder to get the consen
Of the attorney general before he cal
commence suit against his company. :.
believe there should be a standard lif
insurance policy, just as there Is stan
dard fire insurance policy. The compan7
should be compelled to account annual
ly for the surplus:
HThere are many evils existing il
the small companies which are at pres
emit overlooked in the scandal concern
ing the big companies. The whole sys
tenn Of industrial insurance needs over
hauling. It has proved O. very lucra
I tive business for those who engage i
; it, The premiums, which are literall
pennies paid by the poorest class. O
working people, have enabled graspin
men to accumulate fortunes. In cas-
Of lapses, the policyholder loses every
; thing. There is no non-forfeiture claus
in the contracts ~ ".i'
Officers Elected
Following the address, the Commel
: cial club elected the officers. Thos
t Ter: secretary. Charles A. Hart; trea
3 urer, G. L. Caldwell; executive con
/ mittee, E. c. Stringer, w. II. Lightne
81 and w. H. Yardley. B.
Memorials for George C. Squires an
w. r. Jewatt, who died during tn
il year, were placed on record. .: .ts.:>-
"a James G. Armstrong presided at tt
q banquet and acted as toastmaste
:, Charles w. Farnham read an entertain
n ing satire on life insurance methods.