The Farmville herald. [volume] (Farmville, Va.) 1890-1934, 1906-02-09
INSURANCE REPORT
Armstrong Committee Would
Sweep a way Old Methods.
ENTIRE REFORM OF PRESEyTSYSTEMS
state Inspection Must BE More Jealous
aud Kigid-rubiicity keynote.
VIII Cut out Family Trusts
and Reduce Salaries.

ALBANY. Feb. 6. - The Armstrong
Insurance inquiry committee demands
that lfe insurance in its old form be
swept ont of existence.
After live months Of constant effort
and the examination Of hundreds Of
Witnesses the joint legislative commit
Tee 900 insurance has completed a draft
of JOS report, which presents the most
advanced scheme Of life insurance leg
.siat.on ever attempted In any state
The main features Of the report IN
concrete form as they have been de-
c.dcd upon mp to the present time were
compiled. it Is understood, by Messrs.
Hughes McKeen and Fleming. counsel
TO thc committee and their associates.
lhc many recommendation made are
ile joint work Of the members Of the
committee.
The state insurance department Is
not seriously disturbed by the report.
The superintendent, with his deputies
and assistants, Is permitted TO control
tho Insurance companies as now, save
that absolute and vigorous supervision
ls required Of the department.
The legislature Will be asked 10 pass
laws that viii entirely reform the sys-
tom that has prevailed in the big COM
pal.es examined. Publicity is the key
note struck IN all the recommendation
made The state department must be
more Jealous, and standard forms Of
policies are to be changed. Dividends
must be paid annually, and death
claims must be settled within thirty
days Of proof Many radical changes
n the plans OF naturalization are rec
ommcnded
Salaries are to be cut down. and the
existence Of family trusts Ike those
formed by the McCurdys and others
VIII mo- longer be possible If plans pro
posed by the committee are put in ef-
feet
The principal reform demands are as
follows:
The method Of conducting insurance |
business Is altered, but the Office Of su-
Dor.ntendent Of insurance is not abol- |
shed and the organization Of the Of /
fee IS preserved.
Standard forms Of life insurance pol /
.cles are provided for equalizing all In
surance in the state, while bonuses and |
rebates are forbidden under severe pen
llues.
Agents are placed under strict super
vision. and their compensation must be
.lther full salary or commission, mixed
being forbidden.
Life insurance companies are forbid
len 10 control subsidiary companies,
md their officers may not be stockhold-
.rs IN such companies.
State supervision Of absolute charac-
er IS provided, and publicity Of all ac-
cunts, expenses and holdings Of every
nature IS made obligatory.
Reform In investments Is provided |
or, but no attempt Is made TO debar
from holding safe stocks.
Universal naturalization Of companies
g advised and encouraged and provi-
Ions made for converting stock compa-
lies.
Open elections, fair ballots and full
nd fair representation at annual cleo
ions is provided for and ballot box
tunlng forbidden
Surplus must be apportlOned among
be insured each year, and the present
ica of deferred dividend is made ille-
al, while payments upon death are d.
ectcd within thirty days.
Methods Of bringing suit are provid-
O., and an literature must be submit
ID 20 the superintendent Of Insurance.