Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-03-22
IOWA Will Pass
INSURANCE LAW
Chances Seem Favorable to Pas
sage Of Drastic Measure by
the Legislature
is FAvoRAeLY REPORTED
FAvoRARLY REPORTED
Provides for Appointment and Ao.
counting Of Surplus Annually and
PoIicyholder Must be Given Option
of As to Purpose to whie" It Shall
be Applied.
rBy Ora Williams.l
ial to rlmes- Republican.

Des Moines. March 22.-lnsurance
legislation OF a character which the IN
surance people of Iowa would call most
drastic and dangerous. but which
seems to meet popular demand IN
| view Of recent exposures Of bad insur-
ance methods, Is In plain sight. The
house committee on insurance. after
hearing the representatives of Iowa
companies and the state auditor. re-
! ported to the house bill the purpose
OF which is to put an end to the issu-
ance of deferred dividend policies, in
which class of policies 1t is claimed
practically all the insurance scandal
has arisen. This bin Is practically that
which was recommended to all states
by the national conference of insur-
ance commissioners. 1t has been re-
vised and perfected by the state audi
tor and attorney general. II Is a bill
following lines of probable new legis-
lation elsewhere. The first section OF
the bill makes plain Its purpose, as fol-
lows:
EVERY Olu-Iile, lSSal TSScINC itlS III
surance company doing business In
this state which issues participating
policies or Is conducted upon the inu-
tual plan, shall annually make an ap-
portionment and accounting OF surplus
or profits Of all participating policies
issued to residents of this state. after
Jan. 1, 1907, and shall notify holders OF
each and every such policy so issued,
of his share of such surplus or profit,
on or before the third anniversary OF
his policy, and annually thereafter.
For the, purpose Of determining each
individual policy holders share in the
annual dtvisible surplus each company
shall ascertain what amount has been
contributed to such surplus by each
and every such policy and the holder
thereof shall be entitled to such pro-
portion or share of such surplus as
shall have been contributed thereto by
his policy, and when such share is as
certained 1t shall be distributed In ac-
cordance with the provisions OF Sec
ton of this act provided. that stock
companies issuing participating poll
cies shall not from the surplus arising
from the profits upon such policies re-
Iers a greater amount than their propor-
tiona lare of per cent semi-annual
interest upon the capital stock of such
companies actually paid up In cash"
There is provision for maintaining
a reasonable surplus and for ascertain
ing the divisible surplus and carrying
it on the books as liability until paid;
then there Is provision that every poll
icy holder shall have the right to select
either of the following plans for dis
posal of his share OF the apportioned
surplus:
Il. To be applied to purchase paid
up additions to the policy
49, To be applied in the reduction OF
the premium.
"s. To be paid to the policy holder in
cash.
a. To remain with the company
subject to the right of the insured to
withdraw the same, with all accumula-
tions thereon at any anniversary OF the
policy, or to be applied to purchase an
,nuities in permanent reduction Of sub
seauent premiums, provided that COM
panies may decline to grant either Of
the options provided for. in this sub
division Of this section"
These are the main provisions Of the
proposed Iowa law. 1t would be rad
ical departure from all past systems.
1t would place the Iowa companies on
new basis for fully so per cent Of all
business done now is contrary to this
bill There is provision for requiring
medical examination in case a policy
holder elects the first Of the four plans
of taking the surplus All policies is
sued on different plan than that con-
templated here and in force in Iowa
shall go to this plan next December.
No company shall make any contract
or agreement with a policy holder for
any waiver of any of the provisions of
the law.