The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-02-03

the, committee Of sixteen will attempt |
the drafting of bill which will correct |
the most fragrant of existing evils and |
still be general enough to be standard !
for enactment in all the states.
By direction of the conference the |
committee will report to an adjourned
meeting of the conference to be made |
up of the same membership as at pres
emit. .<...-
Membership Of Committee.
The membership Of the committee,
which may be enlarged, is as follows:
II. R. Prewitt, Kentucky; H. E. Folk,
Tenqnesseei I; E; Prake, District Of Col
B. F. Grouse, Maryland; T. D. O'Brien,
Minnesota; z. M. Host. Wisconsin:
B. F. Carroll. Iowa; J. L. Pierce, Ne.
braska; E. T. Young, Minnesota; j. NJ.
Bayer, New York; George H. Adams,
New Hampshire and J. E. Bird, Michi-
gan. a
Governors Beckham Of Kentucky,
johnson of Minnesota, Davidson Of Wis
consin, Elrod of South Dakota, Sarles
of North Dakota and Cummins Of Iowa
were made advisory members Of the
committee. 49,
Condemn Deferred Div1dends.
In the resolutions adopted the system
OF life insurance, commonly known as
the deferred dividend plan, was con-
demned and declared to be unjust. A
proposition for an annual accounting of
the surplus funds Of insurance compa-
MES was Endorsed, and the convention
declared for a plan for governing mu-
tual companies whereby each policy
holder will have direct voice in the
management. Investment Of the funds
belonging to policyholders cannot, in
the opinion Of the convention, be re-
duced to uniform basis, but must be
governed by conditions. A standard
form Of insurance contract to be adopt
ed by state legislatures was declared
advisable. T. -"
Report Of Committee, 49,.
The report is as follows:
'F1rst-We believe that the system
commonly known as the deferred divi-
dend plan, which consists in deferring
all dividends g.. to. the end Of a period
the. surplus Justly halnagina toAbhose
policy olders who either lapsed OF died
before the4end Of the period, is unsound
in principle, unjust in it's operation,
and such legislation should be enacted
as will remove the evils Of this system.
"With respect to policies Of that
character already issued, there should
| be required, from this time forward, an
annual statement and provisional ap-
portionment Of surplus Is each policy
holder, and the aggregate SO appor-
toned to such policyholders should be
charged as liabilities of the company.
| "With respect to all future policies,
there should be an annual accounting
OF the surplus, an apportionment to be-
gin at a proper time after the issuance
OF the policy, to each policyholder, of
his share Of the entire surplus Of the
preceding year, after. reserving rea-
sonable margin of safety, and an op-
ton on the part of the policyholder to
withdraw his share in money. Other
options relating to the purchase Of ad-
ditional insurance may be included.
In Mutual Companies.
"Second-With respect to the repre-
tual insurance companies, we have care
fully reflected upon all the plans that
have been proposed. We recognize the
difficulty in accomplishing the much
desired result. We are impressed with
the necessity Of change in the present
methods, and we suggest for consider
alton by the committee the adoption of
some plan whereby there will be in each
mutual company a division of iurisdic-
ton, with the right Of the policyhold-
ers Of express jurisdiction to select a
representative or representatives to at.
tend the annual meeting of the policy
holders; the details Of such plan to be
devised so as to bring as nearly as pos.
sible to each poicyholder the conven-
fence and practicability Of exercising
his right to voice in the management
OF his company. r -g@. In. 49,. =. !
Third With respect to publicity, we
believe that the existing laws Of many
states are sufficient to authorize the
whatever information is desired.t The
remaining states should confer upor
their Insurance departments like pow
ers. .+.. < - '.
'Fourth-With respect to invest
, ments, we believe that, while all invest
ments should be conservative and ex
clude. speculative properties, it is i'm
practical to attempt uniformity amone
, the states. Each state must necessarily
determine the question with reference
to its own peculiar conditions.
For Standard Forms.
"Fifth-With respect to standard
forms of insurance contracts, we be
: lieve that the statutes Of the severa
states should prescribe the forms Of
life insurance policies, and that no othe,
, forms than those so prescribed should
) be permitted. Uniformity upon thi
, subject is in the highest degree desira
BILE, and an earnest effort should b
made to secure that result. In prepar
ing these forms the extreme of car,
should be exercised in order that the,
! may embrace every legitimate contrac
Of insurance and do no injustice t,
} any class of companies.
t "Sixth-Respecting the several othe
1 subjects enumerated by this conferenc
for discussion and referred to this com
E mittee, we believe that this conferenc
i should not now fully declare it's cor
: victions, but that the committee shout
t further carefully investigate and cor
/ slider the same in formulating the pre-
r posed regulation of life insurance con
s panies. >,
0 The states voting. against the adoI
= ton Of the report were:
2 Delaware; Illinois, Indiana, Kansa.
II South Dakota and North Dakota.
v The states and territories voting fl
: the adoption Of the resolutions We're:
California, Colorado. District Of g
+. lumbia,- Iowa, Maryland, Massaeht
3 sets, Michigan. Minnesota, Mississippi
. 4 Wisconsin, Missouri, Nebraska, Ne
). Hampshire, New jersey, Ohio, Oklaht
y ma, Rhode Island, Tennessee, Texa
+ Washington, West Virginia, Wyomln
j. and Hawaii. # S.. 5 s5