The San Francisco call., 1906-09-28
WOULD REGULATE.
LIFE POLICIES.
Committee on Uniform Leg
islation Recommends the
Measures of Armstrong
CLEARNESS DESIRED

If the recommendations of the COM
rnittee on uniform legislation apOoiuted
by the conferencesof Governors. Attor-
news General and Insurance Commits
missioners that met in Chicago shall
be adopted generally the bills sug-
gested by the Armstrong Investigating
committee in New York will be the
basis of procedure regarding life in
surance The committee consisted of
Thomas D. O'Brien. Zeno II. Host. B.
F. Carroll. ]. L. Pierce, Henry R.
Prewett, Reau E. Folk. Thomas E.
Drake, ". q. yandiver, Z Myron Wolf.
A l. yorys, B. T. Grouse, George H.
Adams. E. T. Young. J. H. Meyer, J. E.
Bird, T. H Nash, s E. Stiliweli, N E.
Hadley and John A. Hartigan.
portion of the report of the COM
mittee is as follows:
The resolution Of the Chicago con-
ference, the Armstrong bills, the bills
pending in other Legislatures and the
general discussion Of the subject in
dicate a general conviction among the
more control over the management of
life insurance companies. This COM
mittee shares that conviction and the
that conviction is that widely scattered
policy-holders whose individual inter-
est is relatively small, as to the whole.
do not exert intelligent, concentrated
funds, and no system has been devised
by large company or by the law that
will effectuate such control
The efforts of this committee have
been first directed 10 ascertain II pos
sibie what control by the State will be
most conducive of honest, economical,
competent management while interfer-
ing least with the honest judgment and
proper conduct of those responsible
for the management
Every proposed radical interference
except TO prevent frauds and crimes,
has been opposed by arguments sub
mitted TO the Armstrong committee and
this committee. Among those are linn
iting volume of new business. limiting
expense loading and restricting COM
missions and other expenses. limiting
surplus or contingency reserves, for
bidding deferred dividends and COM
pelling annual distribution and the
establishment OF statutory standard
forms OF policies. These and other
proposed forms OF Interference by the
State meet instructive opposition be-
cause they undertake to control what
specting a legitimate matter with
which the state does not ordinarily
interfere.
This committee is of the opinion that
the considerations far outweigh those
against interference by the State
An annual accounting and report OF
dividends on all plans of insurance
and all durations and at different ages,
after the manner prescribed in the
amendment OF section 1e4 proposed in
the Armstrong bill. would permit OF
intelligent comparisons and weighing
of relative merits. induce competition
in dividend results and therefore tend
toward a compelling of honesty. econ
only and competency in management. II
policies OF the same class IN different
companies had like provisions and
benefits. With widely differing provf-
sionS such system OF annual account
ing and reporting, in ahording oppor-
tunities for comparisons, loses much OF
its merit. II standard forms may be
prescribed and all companies COM
would seem that the annual reports of
dividends would be susceptible of in
telligent comparisons by ordinary per-
ing relative merits OF companies.