The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-03-05
Actuary Should Be Called In.


company. the Continental Life Insurance
& Investment company must provide for
its portion of the expense of mana cement
out of the profits of the bond investment
VeStmentS. That YOU may have an IN
Outstanding of the operation of the con-
showing at the age of u, the net pre-
MUM, the loading and the gross pre-
MUM for all subsequent years during
the life of the policy, which explains it
self
THE result shows that on ordinary
life policies. at the age of Il years, taking
the expectancy at 40 years. Il per cent
of the premiums collected will go to the
Continental Lift Insurance & Investment
company, and % per cent 10 the Western
Agency company, and this % per cent
business and Of keeping it on the books.
On a ten-payment life policy of the same
pany will have received 7S3 per cent and
the Western Agency company 2L7 per
cent.
teen payments the company will have
received q per cent and the Agency COM
pSny % per cent On q, twenty-payment
life; after twenty payments the company
will have received "a per cent and the
Agency company 26 per cent On a ten
year endowment. after ten payments the
company will have received s. per cent
and the Western Agency company is per
cent. On a fifteen-year endowment, after
fifteen payments the company would re-
ceIve 81 per cent and the Agency COM
peny 10 per cent. The percentages used
above are approximately correct and the
figures used are taken from the table on
which settlements are made between the
Agency company ano the Continental Life
Insurance & Investment company
Western Agency Company Contract
Ordinary Life. First Year Loading-Age
q. Net $7.59; loading, s12, gross, $685.
1854; gross. Sl9.62. Result 40 years-Net,
500, n. or Il per cent; loading, $228.os or
Ten Payment Life. First Year Loading
Age q. Net, $3.50; loading. $376l; gross,
$3.50. Subsequent years-Net, SSS.4 IS; load
ing, 81. ~ gross, $500. Result 10 payments
s9S.09, or % per cent. Total S452-
Fifteen Payment Life. First Year
i sS "a Ne 0s 81 caG Ds9
ing. S6.37; gross. 1885, Result Is payments
Net, $685. s., or a per cent: loading
sil5.25, or 3 per cent Total 500 SSoi.9o- vo.r
Loading-Age q. Net. $50; loading,
81. 49; gross, S29.OS. Subsequent years
Net, sell; loading, $697; .gsrosss' S29-cs
per cent: loading. S15392, or 2e per cent
Ten Year Endowment. First Year
Loading and Subsequent Years-Age p
Net, 1888; loading. $1942; gross sos. 20
Participating result 10 payments-Net
$3.50, or 81 per cent; loading, Sl942o or
l9 per cent, Total. S1,057.50.
Age q. First Year Loading-Net, s7.59;
loading. s60S1; gross. s6s 40 SUBSEQUENT
years-Net S5901; loading, s9.39; gross,
SOS 40 Result 10 payments-Net. S8SS.7S, or
Total, S1,O26.
I've suggest that a COPY of this con-
tract should be filed with some competent
actuary so that a reliable report NAV be
secured as to its effect upon the policy
holders.
I'VE low call your attention to section
of the contract follows
4" Tt is hereby agreed, that the party
of the second part The Western Agency
company, shall have the privilege and au-
thority to mortgage, sell, transpose or
otherwise dispose of part or all OF the
said expense element of premiums re-
ceived under this contract, to any person
or persons whomsoeVer, and that SAID
party of the first part, continental Life
Insurance & Investment company shall
agree TO acknowledge the validity of any
assignment mortgage or other instru-
ment of conveyance which the party of
the second part may execute in Its capac-
fty Of general agent Of the party Of the
first part under this contract
Preparing in Advance.
1T would seem from the reading of this
section that provision was already being
made for the assignment of a portion of
the loading to another company which
was not organized until Aug. 2 1895, the
Western Securities company, the Cont
mental Life Insurance & Investment com
pany agreeing in advance TO acknow !
edge the validity of any assignment,
mortgage or ether instrument of convey
snce which the party of the second part
may execute in its capacity of general
agent Of the party OF the first part, I'M
der this contract
Section s requires the company to quail
ifv to do business in any state upon the
request of the agency company,
Section 9.-The party OF the second
part CThe Western Agency company
! hereby agrees not to pay or knowingly
allow to be paid any rebate of premium
in any manner whatsoever directly or IN
Section 10-'The party of the second
part (WeSteTn Agency company, shall
have power to employ agents and solic-
itors for insurance upon such terms as il
may desire, hereby absOlving the party
Of the first part from any obligations
/ and agrees 10 protect the party of the
/ first part from any liability under said
{" Section 1.-THE party Of the second
part (The Western Agency company
| hereby agrees and does assume to carry
/ into effect ali contracts entered into and
now existing with the regular agents and
/ managers, by the party of the first part
/ fThe Continental Life insurance * IN
VeStment company, and all the business
produced by such agents from and after
this date shall be subject to the agree
ments and conditions of this contract
/ The party of the second part agrees To
/ assume and pay the rent and other Incl
dental expenses connected with the
| branch office at Butte. Mont, and Sar
! Francisco. Cal, and relieve the party OF
/ the first par5 from any liabilities con-
I nected Herewith. Nothing herein men
/ toned shall be construed as affecting the
/ contracts entered into and now existing
/ with Frank a. Werner and q. s. kim
/ ball. special suDeriutendents. and p. 3
4 Locker as manager of the ten-year saw
/ irgs and investment bond department
" Limited as above, this contract shall
/ extend for a period of twenty-five years
from date
LAS the contract provided that the ex-
| pense loading thus assigned includes the
| first year on the preliminary term ba-
/ sis, and the regular loading thereafter
/ each year as long as the policy is in
force il will be seen that at the end oi
/ twenty-five years the contract will still
! have a long term of existence.
No Provision for Termination.
There is no provision anywhere in the
contract for its termination within the
1 period Of twenty-five years. The con
/ tract with the Western Agency company
takes away from the home office the
very many b1Tdensome details of the or
/ Cinary work Of life insurance company
and eliminates one class of expenditures
/ TO which all companies are subjected, and
/ that is the losses on the agency force in
/ the field All such losses are now horns