New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-03-30
REFORM BILLS READY.
no GO THROUGH TO-DAY.
Insurance Measures Put IN Final
Form-Only Minor Changes.
- - . rhe Trisun.. ]

TBy telegraph TO The Tribuns.l
Albany March SO.-After a session lasting un-
81 long after midnight the Armstrong investi-
rating committee. sitting with the regular in
surance committees OF both Senate and Assembly,
-sssed on the reform insurance bills in the shape
n which they are 10 bear the seal Of the investi-
eating committee They will be reported favor
sblv in both houses tomorrow morning and
rushed 10 passage
Changes Of importance have been made. but
nothing radical nothing to destroy in any way
The reform spirit Of the measures. The changes
have been almost entirely technical, due to
honest differences Of opinion between actuaries
and rhe committee on points where the members
Of the committee themselves were somewhat in
doubt.
Contingency reserve. that mooted question.
has been altered So that any company with
more than S75O0o,0OO assets may. on applica-
uor u the Insurance Commissioner. maintain
whatever reserve he deems expedient 10 meet
he particular situations. The section regarding
The limitation Of expenses has been modified
materially SO that it will allow about so per
cent on the first years premium to the agents
and after that renewals on ~ per cent for nine
years.
TIE section relating to investments went al
most unchanEed-only altered to permit the
companies now holding collateral trust bonds
N retain them.
senator Armstrong. Charles f. Hughes. Miles
y. Dawson. Matthew G. Fleming and the mem
hers ~ the committee who had been i'm New
York came to Albany this afternoon. going into
session with the rest Of the members Of the
Armstrong committee ana the regular Insur-
arr0 committees al 2. m. They continued
wrestling with the bills. with interval for
nor until after I this morning Then Sena-
III Armstrong made a hurried statement out
lining the changes in the bills Of which the
substance was as follows:
Tie bills relative TO lobbying. political con-
t-#nurious the code amendment relative to
perjury false entries in books and kindred sub
.eats.
The frzt three Of the bills first introduced
were reported with no amendments save purely
formal ones. The standard forms of policies
and The bin regulating fTaternal and assess
TENT orders have been consolidated with the
general amendilent 10 the insurance law.
changes I'm these sections were largely formal.
As TO the general bill its requirements are
made applicable To domestic companies only.
save the provision relative 10 the expenses of
procuring business. That is that any for
e.EU company doing business in this state snail
.-uform 10 the limitation of expenses for COM
panies domestic. or II shall not do business in
tlis state
Hldes that the original scale shall be continued
down 10 the part about the reserve being main
'ained 10 the - per cent limit. The balance is
stricken out.
This means that until company gets assets
of StobBths the scale for contingency reserve
shall he the original bills provided. Then
there Is provision that the Superintendent IF
Insurance annually may permit those COM
Tsnies With assets over S150D0OO0 To carry a
larger contingency reserve If il is necessary to
meet the situation
The clause relative TO the Ioadiugs on
premiums has been stricken out
Tho provisions as 10 the limitation Of ex-
UenseS have been modified materially. Now
they provide that the c0mpany's expenses for
FIRST wear business shall not exceed commissions
20 agents. salaries paid 10 agents i'm lieu Of
commissions. medical and inspection fees and
advances % agents. These four classes Of eX-
ueUSes shall not exceed the loadings and marE-
JUS on policies as originally provided.
This viii allow about 80 per cent to the agent
on ordinary life premiums. He IS allowed nine
after that per cent collection fees. The COM
TaUies have the privilege Of committing these
renewal commissions and paying them off jan
three or more years. buI not more than two
rfrhs ~ The amount in any one year.
As 10 investments. the only change is that
'nnpauies now holding collateral trust bonds
may retain them No company may invest in
these bonds ia future. The only changes made in
The bin fixing The standard forms OF policies
were designed 10 make them actuarially perfect.
The new forms become operative January !, but
prior 10 October the superintendent is authorized
- modify them SO long the modification does
r0r conflict with the law.
The committee assisted IN this work by
NeSsrs. Rhodes and Welch. chairmen OF the
artuaries' committee; Lunger. OF the Travellers
Insurance Company. and McClintOck. Of the
Mutual Life. All the amended bills will be re-
ported from committee in both houses to-mOr-
r.H Tho committees win meet for a short
session tomorrow morning I'm order 10 review
re tEpeWritten form Of the bills.