Omaha daily bee., 1906-08-12

does not consider the creation OF a big
surplus to be sound business management,
and, as II does not have to pay large sums
to legislative agents, contribute to cam
paign funds. or create kindly feeling by
means of expensive social functions, the
policyhoders find there is something to
share when the profits are divided. These
now accrue at the rate of nearly $4,000
per annum. The department has distrib-
uted in dividends to policyholders s5,oO10oo
in cash.
Bonuses are allotted every three years,
but by a recent arrangement interim bo-
muses. are given in the case OF claims by
death or maturity. and are included in all
calculations of surrender values, whether
the policies are actually surrendered or
are borrowed upon or the premiums are
overdue It is the policy of the ONCE TO
make things easy as possible for those
who get into temporary financial straits
and in accordance with this purpose the
policyholder who is compelled to surren-
der receives the proper proportion OF ac-
crued bonuses for every premium paid
since the last valuation. II is the same
kindly. human, brotherly spirit which
marks the administration OF every depart
ment of the New Zealand government.
Policies Continue Automatically.
This kindly unwilingness 10 take ad
vantage OF anothers necessities is shown
also in the system by which policy
which premiums are overdue continue in
force automatically. The 1900 policy
holders in the Equitable who have allowed
their policies to lapse during the insur-
ance disclosures and commissions would
doubt be thankful were such scheme in
force here. Surrender values and loan
values are allowed after two years. and
If after that time the premium is not paid
an account is opened crediting the policy
holder with the surrender value and in
creases therein and debiting him with pre-
miums and interest thereon as they fall
due. AS long the amount to credit
exceeds the amount owing the policy is
In full force, and In the event Of death or
maturity the sum assured and bonuses
less the arrears with interest are paid
During one recent year twenty-nine over
due policies fell I'm by the death OF the
persons assured, and, although on most Of
them not a penny OF premium had been
paid for six years or more, the depart
ment recognized claims upon them TO the
amount of $4,000 exclusive of bonuses
Lapsed policies which have not acquired
a surrender value or in which the sur
render value has become exhausted may
be revived within twelve months by Civ
ing proof of health and paying arrears and
a fine.
The policy of a holder committing sui
eide within six months of the date of the
policy does or does not become void,
cording to the discretion OF the commits
sioner. II he IL satisfied after making
careful inquiry that there was no suicidal
intention at the time of the taking out OF
the policy he pays the claim. The extent
to which the officials OF the New Zealand
government are allowed to exercise their
common sense and their human feeling
i'm their dealings with the people is a bit
surprising. In every department one meets
with that same kindness and fair play
instead OF a strict adherence 10 the letter
Of the law. 1t has the effect Of making
the government in It's relation to the people
seem more like band Of elder brothers
than a complicated machine.
Endowment Assurance.
Endowment assurance is the class of
policy chiefly issued, This fact makes COM
parison OF New Zealand rates with those
In this country somewhat dificult, but they
are lower than those charged by the pri-
vate companies doing business in the col
ony The Australian Provident association
pays larger bonuses, but charges higher
premiums. But II is a much Older institu-
ton and has branches in many paris Of
the world, while the department does little
business outside the colony. The death
rate in New Zealand is the lowest OF any
country in the world, and this fact. of
course helps to make possible both lower
rates and larger profits The premiums
originally adopted Dy the Insurance depart