Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1906-01-09

reserved as the margin of safety, and
this divergence of Judgment can only
/ be adjusted by your good common
sense, TO which confidently submit
1.-The whole controversy.
1t is believed by many thoughtful
men that there should be a limit to
the aggregate amount of insurance
which a company should have out
standing; or, in other words. that
the amount at risk should be restrict
Led to some large, but reasonable.
sum. have not been able to reach
satisfactory conclusion upon this
concentration upon it. It is, how
ever, so mportant-indeed, SO fun
damental-that I comply with many
requests, and invoke for 1t your
careful consideration.
Urges Conservatism
4 This state has, with great wisdom,
pursued the policy Of narrowly re-
strtcting the manner In which the
legal reserve of a company may be
invested. 1t is to be hoped that an
enlightened conservatism will always
control this essential feature of super
vision. / believe, however, that the
time has come to enlarge the field Of
investment. In harmony with the
plan already adopted, life insurance
companies should be permitted to in
vest in drainage bonds, and in such
ing or other public improvement GER
| tificates. These securities are as safe
as municipal bonds, and inasmuch
as the opportunities to loan money
on real estate will gradually become
less, you ought to open such other
remunerative fields as are without
! danger. believe, also, that every
life insurance company organized un-
| der the laws Of this state should be
permitted to invest a reasonable sum
| (to be fixed by the executive council,
but not exceeding 10 per cent of its
legal reserve) in a home office; and
that, upon transfer of the title to
such office in trust to the auditor. its
value, as determined by the proper
authority, should be reckoned part
of its deposit with the auditor. The
course 1 have suggested will not only
/ insure safety in the investment of
assets, but will have a tendency to
keep the money Of our people at home
and to build up the state.
Need of Amending Inv
In the connection desire to call
your attention to a feature in our
present law that ought to be amend
ed. AS the statute now is, life in
suraHce companies can loan money
upon real estate, under certain linn
itations, in Iowa and in any other
state in which they are authorized to
do business. It is the intention Of
the law that investments of this char
and subject to the approval of state
authority. With respect to loans
upon real estate made in distant To-
calities, this supervision becomes ex-
cecding difficult, if the right be given
to loan wherever the companies are
issuing policies. The law in this re-
spect ought to be changed, SO that
if the companies desire to loan money
upon real estate in other states they
should first apply to the executive
4 council and receive authority from
4 that body, prescribing In what states
or parts Of states, other than our
4 own, such loans can be made. Do
.Ipose that each mortgage shall be APP
proved by the executive council, but
4 that the territory in which loans may
be made shall be fixed by an order of
the council. The gradually decreas-
ing rate of interest In Iowa furnishes
a strong motive to loan elsewhere,
and there should be some other check
Ter state for the purpose Of issuing
policies.
i The last suggestion that I have to
make with respect to life insurance
hIft
j have eivan n this niaca hsnonsa - Il
i not esnect-.indaed do not recor ~
lment-1action 11non II Nv this eenara
Iasse,nhlv n inyolves an exfent ~
j Study ana investiea lion MAT viii -,rob
ably preclude YOU. even If + shnnIfl
j meet your annroval from disnosino
Of at this time. - A-' :
49,, No., r,,.,
MucA is'uu Iac'Aceu
There is more fraud and decep-
ton, sometimes intentional and some
times unintentional, practiced upon
pol1cy-holders by reason Of the variety
IN the forms OF life insurance con-
tracts than In any other way. There
J are hundreds OF these forms, differing
oftentimes but slightly from each
4 other. and these differences are. In
my opinion, in many instances created
for no other purpose than to enable
the agent to found upon them an argu-
ment, the fallacy of which cannot b.
detected by the unskilled mind, ant
the effect Of which Is to create an at
mosphere iof mystery about the entire
life insurance business. There arr
but few kinds Of legitimate life tnsur-
anee contracts. You can certatnl!