The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1906-10-23
Reduce the Initial Premium
or Give Annual Dividends
is Advice.
CAMPAIGN MATERIAL
Governor Hanly and Other Political
Speakers to Use It During
Next Two Weeks.
Especial to Lake County Times.o

Indianapolis, Oct. 23.-The life insur-
ance investigating committee after
handing in its report yesterday upon
which it had worked for a year. came
to the conclusion that insurance costs
too much. according to the report. and
a return should be made to the policy
holder, either in the form of a reduc-
tion in the initial premium paid. or in
the form of annual dividends.
Annual dividends-the annual distri-
button 10 the policy holders of each
years overcharge-are taken by the
committee to be the real solution.
rates are fixed on mathematical basis,
as nearly accurate as future matters
can be judged When the year is pass
ed the companies may see the error of
the original calculation and repay to
the policy-holders the amount of the
overcharge. as shown by the years ex-
perience. over this point of annual
distribution OF dividends the fight for
insurance reform will probably come
in this state and it can be seen from
the recommendations made by the COM
mittee and probably sanctioned by the
administration. that one Of the big
fights dnring the ,camipg ysear..zeiIls4be
over the matter of revising the insur-
ance laws of the state. The loins are
being girded for the fight, even thus
early.
Incidentally, now. insurance will play
still larger factor in the state cam
paign. Net only will Gov Hanly be
expected to make freer use of the in
surance facts that he had in his pos
session before the report was given
out, but the word has been passed
along the line that other Republican
speakers are to take the matter up and
ducing these last two weeks, work in
a campaign of education along insur-
ance lines, to the end that the people
will be enough informed that they will
support that party that is making for
insurance reform in the state.
The State Life came in for the hard
est knocks at the hands of the commit
tee-because of alleged extravagant
methods of doing business and because
of the many agency companies
that it fostered. The American
Central of Indianapolis was spe-
ciaily mentioned because that is the
only company that stills owes on its
reserve to the state-the amount on
Sept. 20, 1906, being about $4,000 ac-
cording to the report. The Central
Union and the Lafayette Life are COM
mented on because of the fact that
these companies have issued nothing
but special contracts since their organi-
zation The Lincoln National is COM
plimented because of its discontinuance
Of special contracts recently. Under
the new management the Interstate
Life is commended for its reforms.
The enormous amount of 'ficticious as
sets and liabilities Of the Reserve Loan
Life and the Meridian Life and Trust
are hammered in detail, these ficticious
assets and liabilities. so-called, being
policy loans on commuted premiums.
and though worthless as commercial
paper. they swell the amount Of busi-
ness apparently doue.
Agency companies-of which there
are still a dozen-are TO be fought and
fought hard The report recommends
that the auditor of state step in and
compel the cancellation of all agency
contracts.
The committee still further recon-
mended the creation of a new depart
ment, with the commissioner of bank
ing as its title: the state regulation of
agents; prohibition of estimates; the
penal code TO apply to insurance laws;
limitation on policy loans written any
one year; publicity of business; fur
ther analysis of annual reports. stand
ard policies to be written; prohibition
/ of rebates and further payment on
special contracts: annual dividends af-
ter Jan. 1, 1905; revocation Of all prox-
les to be good when given for one year;
fifteen directors for each company;
/ prohibition against lobbying except by
recognized agents; prohibition agains;
/ political contributions. The report also
advocates a revision of the mortality
tables with view TO making insur-
ance cost less. and recommends the
prohibition Of Van Laninghams carry
1 ing out the contract that he took oveI
from the State Agency company. In
| conclusion it recommends that an in
vestigation be made of assessment and
fraternal companies.