The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1906-09-07
PROTECTION For
! !. POLICY 0! &c HOLDERS 10. D
nor. ALBERT COLI oaoE'
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e. Hon. Albert L. Cole devoted con-
siderable portion Of a recent: speech
to the consideration Of the problem
Of how best to protect the interest OF
policy holders He said: M ~ !
= Until q couple of years ago most
people believed that life insurance
policy was good form of Investment.
There was also general national pride
IN the size and strength Of our great
American. life insurance, companies,
The recent DISCLOSURES as 10 the scan
dalous business methods OF some Of
the Eastern lite Insurance. comp4niss
have changed, oil, this. Many policy
holders have allowed their policies TO
lapse! comparatively little new bus,
iness has been written. and the big
Compsnies have become Z subject, Of
criticism. gibes and sarcasm instead
81 praise and PRIDE. i ;Ss'%.S' g %2sA r
1T would be. serious misfortune
Tor the country II this we're" carried
too far. A life insurance policy In a
properly managed company 10. for
most families, a valuable species OF
saving. If the attack upon life sfnsur-
ance companies generally becomes 50
fierce that the people acquire a per-
manent distrust of all life insurance
and cease to insure their lives, one
OF. the most valuable instrumentalities
for thrift will have been eliminated
from our national life. II the attack
Is carried SO far as to effect the SOL
vency Of the companies, the resulting
calamity will be appalling.
1T is the part of wise statesman
ship to so handle the present situa'
ton:
"u.) That the solvency of the ex
listing institutions should not be In
perilled.
"(2.) That the companies which
have not been guilty Of abuses should
not be made to suffer along with
those of a different character.
"(3.) That the popularity of life
insurance as. family protection may
be preserved, and
"(4.) That it may be made safe so
that those who invest their money In
1t may not be deceived or disap-
pointed.
Il do not think that these objects
are to be accomplished by, a change
of management of the companies
alone. L ami afraid that even if the
policy holders participate in the selec-
ton Of trustees, as they have not
heretofore done, the trustees of their
selection, however fair their repute,
I viz fsYtf It +tiffRcultsa perhaps i'm.
practicable tos give that intimate SUI.
pervisory attention to the several COM
panies' affairs which, In the long run,
10 essential if evils are not to creep in.
ITO secure permanent results, we
shall have to have continued regula-
ton and supervision by the state. We
think We have discovered some Of the
sources of the evil. Extravagant sal
aries, reckless expenditures, and the
use Of trust funds for speculative pur-
poses and private gain, have been en-.
couraged in the opinion Of experts by
the accumulation Of great surpluses,
needlessly exacted, from policy hold.
ers. Legislation requiring at least the
apportionment among policy holders
Of their excess payments at frequent
intervals will check some 'lof the
troubles. But after awhile they will
return again in some other shape un.
less constant vigilance is employed.
The state owes it to its people. to It.
self insure the financial institutions
within it, borders. The average citi-
sen has not the time nor the facilities
for personal Investigations. The state
must assume the task: It's methods
Of Investigation should be- so complete
that its license issued to an insurance
company or a bank, should % equiv
alent to q guaranty that It IL entitled
to public confidence. An insurance
company dishonesty or Incompetent
ly managed, or bank becomes iosol-
vent ,isTa7 public, disaster of wide
reaching consequence, and should be-
made an impossibility. This can be
accomplished in one way. and in one
way o4ls, and that h BY ! system Of
the hHahsp publicity. re Insurance 7 i r
departniekh oil the several ! states
should devise aid enforce the use Of
such forms Of reports that the condi-
'ti6H or the several companies, n to.
ASSETS liabllfttes fandsskpenses, should
b., clearly. disclosed. and should co.
operate one WITH the other SO that tho
cost tof Investigations. from time to,
time may be minimized. The ,revela-
lions of the recent investigation com.
5mittees would have come years ago
HAD such "a. plan been heretofore
adopted. But the. vastness of the
work for the insurance department
Of any one state has prevented its
being done In the absence Of co-opera-