Northern Wisconsin advertiser. [volume] (Wabeno, Wis.) 1898-1925, 1906-12-20

vestigate the subject of hIe insurance
by the state has neen filed with Gov
ernor Davidson. 1t is signed by Sen.
ators James A. Frear of Hudson and
Julius E. Roehr of Milwaukee, and
concludes that state insurance at
this time in Wisconsin is not feasible
or practical and advises against at.
tempting it.
Socialists Favor It.
The minority report signed by SEN
ator Jacob Rummell of Milwaukee,
socialist, differs with the conclusions
of the other two senators and urges
that a commission be appointed to
draft bills providing for the establish.
ment of a life insurance department
by the state II outlines the ineflici.
ency of insurance under present conii.
tons and recites the experiences OF
New Zealand Germany. Austria.
France and other countries and OF
Florida in this country as regards
state Insurance The establishment
of insurance by the state would re-
suit in the payment of reasonable sal
aries, the report states, economical
administrations, liberal policies and
absolute security o. the policy hold
ers.
Persistent Agent Necessary.
The majority of the committee
claimed that the amount of business
done by state insurance departments
is unsatisfactory as compared with
that done by private stock or mutual
companies on account of the woerul
lack of interest on the part of the
ordinary mortal to secure insurance
until implored to do so by a persist.
ent agent. and that therefore the lib
eral or stock company is very 20
tent factor in the success of such in
stitutions. Ia the bills recommended
by the insurance investigating com
mittee are enacted into law, the re-
port states, there will be no need for
state insurance as the evils of the
present system wal be remedied.
The majority report in part is rs
follows.
Your committee offers herewith a
brief statement or arguments for and
against state and governmental insur-
ance, and attached hereto is a sup
Elemental statement describing the
different forms of government insur-
ance which have been adopted in
other countries. Life insurance in
its simplest form contemplates guar.
anteed payments of specific amounts
to the beneficiaries made possible BY
premium savings contributed by all
the insured within the class.
Under the law of averages the 10.
serve required in the insurance bust
ness is mathematically certain. To
this reserve is added by private com.
pnies, upon their participating poll
cies, en- expense loading amounting 10
from 20 per cent to 40 per cent of the
face OF the premium The smaller
expense loading of from per cent TO
20 per cent is added by the companies
to non-participating policies for the
same purpose after deducting the
expense of management and an arbi
trary amount set aside for unassigned
surplus, the remainder of the loading,
together with interest earnings ard
mortuary savings, is distributed back
TO participating policy holders or to
stockholders in the form of dividends
From this brief statement of insur.
ance methods 1t is apparent that safe
and economical management in secur.
ing business. investing funds. and in
the general conduct Of its affairs. are
important factors in the life lnsuranc,
business.
III has been urged by the advo-
Gates Of state insurance that under
appropriate legislation, corferrlng the
power upon the insurance depart.
TENT OF the state, that department
snail be authorized to issue policies
OF life insurance upon such terms 81
viii mature the policies under the
terms of the contract, and will further
enable the state to enter into active
competition with private companies in
the life insurance business. The fur
Their claim is made that under state
insurance:
list Every policy would be guar
teed by the state.
'2d. The reserve funds viii be in.
vested within the state, and thereby
mutually benefit the state and policy
holders.
I'D. Premiums will be less than
those now demanded by private com
panies.
"4th. Greatly reduced expenses IL
salaries ana management will result
18th. Dividends will be reduced al
nually upon an equitable basis.
18th. All benefits viii be Distribute
among the policy holders.
18th. Insurance policies will have
loan value after the first year.