Waterbury evening Democrat., 1906-02-05
INSURANCE REPORT
Armstrong Committee Would
 Sweep Away Old Methods.
ENTIRE REFORM PRESENTSYSTEMS
State Inspection Must He More Jealous and Rfgfd-PubIicity a Keynote. Will Cut Out Family Trusts
 and Reduce Salaries.

l ALBANY, Feb. 5.-The Armstrong
 insurance inquiry committee demands that life insurance in its old form be swept out of existence
 E. After five months of constant effort | and the examination of hundreds of
 witnesses the joint legislative commit tee on insurance has completed draft
 of its report, which presents the most
 advanced scheme of life insurance leg
 islation ever attempted in any state.
 The main features of the report in
 concrete form as they have been de-
 cided upon up to the present time were compiled, it is understood. by Messrs. Hughes, McKeen and Fleming, counsel to the committee. and their associates. Tho many recommendations made are fhe joint work of the members of the committee.
 | The state insurance department is not seriously disturbed by the report. The superintendent, with his deputies i and assistants, is permitted to control the insurance companies as now, save that absolute and vigorous supervision is required of the department. The legislature will be asked to pass laws that will entirely reform the sys- tenn that has prevailed in 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. .4.~ @E
 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 ef- 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 flee is preserved. -..s
 Standard forms of life insurance pol icies are provided for, equalizing all in- surance in the state. while bonuses and rebates are forbidden under severe pen alties.
 Agents are placed under strict super vision. and their compensation must be either full salary or commission, mixed compensation being forbidden.
 Life insurance companies are forbid den to control subsidiary companies, 1 and their officers may not be stockhold- 1 CTS in such companies.
 State supervision of absolute charac- ter is provided. and publicity of NaiT &C., 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 1 is advised and encouraged and provi. sions made for converting stock compa- nies.
 Open elections. fair ballots and a full md fair representation at annual cleo tions is provided for and ballot box stuffing forbidden. 1
 Surplus must be apportioned among the insured each year. and the present idea of deferred dividend is made ille- gal, while payments upon death are di- rected within thirty days.
 Methods of bringing suit are provid- ed, and all literature must he submit ted to the superintendent of insurance.