Perth Amboy evening news., 1906-02-05
REPORT N
INSU RAN &c.
Armstrong Committee Would
SWtaep Away Old Method Re-
form Present System.

ALBANY, Fcll 5.-rhe Armstrong
insurance inquiry committee demands
that life insurance in its old form be
swept out OF exlstence.
After five months of constant effort
and the exafpination of hundreds of
witnesses thel joint legislative commit
tee Oh insuraIkce has completed u draft
Of its report, (which presents the most
advanced scheIme of life insurance leg
islation ever ATTEMPTED in any state.
The main features of the report in
concrete formf as they have beer de-
cided upon up \to the present time were
compiled, it is understood, by Messrs.
Hughes, McKeeil and Fleming, counsel
to the committee, and their associates.
The many reconi mendations made are
the joint work OF the members of the
committee.
The state insurance department is
not seriously disturbed by the report.
The superintendent, with his deputies
and assistants, is permitted to control
the insurance compani es as now, save
iiuL dOoOiulC lllu NlSON gus SuDGI NlSlOu
is required of the department.
The legislature will be, asked to pass
laws that will entirely reform the sys-
TEN that has prevailed lin the big COM
panies examined. Publicity is the key
note struck in all the Recommendations
made. The state department must be
more jealous. and standard forms of
policies are to be changed. Dividends
must be paid annually, and death
claims must be settled Within thirty
days of proof. Many radical changes
in the plans of naturalization are rec
commended.
Salaries are to be cut down, and the
existence of family trusts like those
formed by the McCurdys and others
will no longer be possible If plans pro-
posed by the committee are put in eff
feet.
The principal reform demands are as
follows:
The method of conducting Insurance
business is altered, but the office of su-
~perintendent Of insurance is not abol-
ished, and the organization of the Of
lice is preserved.
Standard forms of life INSURANCE. pol
icies are provided for, equalizing all in
surance in the state, while bonuses n
rebates are forbidden under severe pen
alties.
Agents are placed under strict super
vision, and their compensation must be
either full salary OF commission, mixed
COMPENSATION being forbidden.
Life insurance companies are forbid
den to control subsidiary companies,
and their officers may not be stockhold-
ars in such companies.
State supervision of absolute charac-
ter is provided, and publicity of all ac-
counts, expenses and holdings of every
nature is made obligatory.
Reform in investments is provided
for, but no attempt is made to debar
companies from holding safe stocks.
Universal naturalization of companies
is advised and encouraged and provi-
sions made for converting stock compa-
MES.
Open elections, fair ballots and a full
and fair representation ut annual cleo
tons is provided for and ballot box
stuffing forbidden.
Surplus must be apportioned among
the insured each year, and the present
idea of deferred dividend is made lille
gal, while payments upon death are di-
rected within thirty days.
Methods of bringing suit are provid-
ed, and all literature must be submit
led to the superintendent of insurance.