Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1906-02-23
RECOMMENDS STANDARD POLICIES
Reviews the Testimony at Length
and Makes Many Suggestions
for Remedial Legislation.

New York, Feb. 2o-The committee
appointed at the last session of the
New York Legislature to investigate
life insurance made its report today.
The report is extremely volumnous
containing 319 printed pages. 1t en-
braces long review of the testimony
taken by the committee and it's recon-
mendatiOns and conclusions as to re-
medal legislation. In addition there
is chapter devoted to the state insur-
ance department in which the COM
mittee declares that it would seem that
the superintendent of the department
has ample power to ascertain the trans
actions of the insurance companies, but
thai the supervision by the department
has not proved sufficient protection
against extravaganza and mal-admin-
lstration. Instances are given of re-
ports made on the affair of the Mutual
Life Insurance Co., the New York Life
insurance Co. and the Equitable Life
Assurance Society, in which nothing
was brought out 10 show the conditions
developed in the testimony given be-
fore the committee.
No substantial application of the
powers of the departments seems nee
essary, according to the committee
which holds that most of the evils
which have been a vigorous perform<
ance of the duties already laid uporf'
the insurance department.
The remedial legislation recon-
mended by the committee provides for
the safeguarding of the rights of policy
holders in mutual companies in the
election of directors; recommends that
stock companies be given authority to
retire their stock and become mutua!
companies. but that such naturalization
shall not be compulsory; various reg
ulations are urged to prevent unwise
investments and improper syndicate
operations; the sale of prohibited secu-
rites within five years is advocated: a
recommendation for the limiting of
new business to s15O,O0O,O0O a year is
made; the committee favors the pro-
hibitlon of contributions by insurance
companies for political purposes: lobby
ing IS condemned and the wisdom of
economical management is urged, but
the committee does not deem il advis-
able that the Legislature should attempt
TO prescribe the expenditures of insur
ancc companies.
Further recommendations are made
on the valuation of policies surrend-
ering values. surplus, forms Of policies
ana publicity Of all facts pertaining TO
corlpany's business. An amendment
to the penal code is recommended to
provide that the person receiving a re-
bate should be equally guilty with the
one who gives il;
In its detailed report of the invcsti-
CATION of the companies the committee
says the accounts Of the Mutual Life
insurance Co. should be thoroughly
examined in order that the extent to
which moneys have been misappIied
and the responsibility for any misap-
plicatiOn which may be shown may
be determined.
Concerning the New York Life In
surance Co., the committee found that
IFS transactions with Andrew Hamilton
showed extraordinary abuse. and that
the statement sent from Paris by
Hamilton was without suitable specifi-
cations
In taking up the Equitable Life AS
surance Society. the committee tells of
TIE dissensions last February which re-
suited in the REORGANIZATION Of that
society and in the disclosures which
brought about the legislative inquiry.