The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-12-15
Agency


The question as to agencies I went
into fully with Mr.. Quinn, and for the
purpose Of having a thorough under
standing requested Officers of the State
Life to have Mr. Van Laningham (who
IS the agent in charge and control OF
Kansas business9 come to 1ndianapo-
lis, and present with this report, and
as part OF ii. the dispositions of Mr.
Quinn viceDresiCent and agency man
ager, Mr. Wynn, secretary, Mr.. Coffin,
general counsel of State Life Insur-
ance company, and of Mr.. Van Laning-
ham, president and general manager
OF the Great Western Agency com
pany-
From a study of the various con-
tracts and the efforts of the company
to get a system by which it would
avoid all advances, and be sure OF get
ting the net premiums, as well as from
the dispositions attached, / gathered
that the idea was formulated OF capt.
talzing the general agencies, ana, Dy
taking policy holders into the company
SO capitalized, make q more permanent
membership, as well as save expense to
the State Life.
The plan adopted was to form
company and purchase general agen-
cy, giving stock for the value of the
agency; additional stock would then
be sold to obtain working capital,
after which stock would be loaned to
insuring members-the stock 10 be
paid for by agent from his commits
sion, but to be forfeited by policy hold
er II he failed to pay his premiums
The success of the first capitalized
company led to formation OF others,
only that the State Life charged
price for the contract, instead of CIV
ing it to a general agent and letting
him make the money
An agency cOmpay was formed with
Illinois and Indiana as the territory.
and the value of the same was placed
at l million dollars, all to be paid in
installmentz. But III selling stock for
working capital there seem to have
been too many people who We're anX-
1ous to be partners and in a short time
dissensions and trouble forced this
agency company into the hands Of a
receiver but as this is written the pa
pers announce a so per cent distribu-
tiDn to people who bought stock, and
a guarantee that every dollar paid
shall be returned, so that no one who
bought any stock in that company will
lose BY the deal. This was made pos
sible by the assuming of the obliga-
lions of this by another similar agency
company, The Great Western Agency
company, which operates in our state.
I have understood that estimates
were given as to the prOhtableness of
such companies. and have no doubt
as to their having been given, but to
specifically condemn the State Life
or an agency company for giving esti-
mates would be unfair, unless I at the
same time condemn all giving of es-
Inmates. as it is a practice which has
every one knows that the company
which lives up to its estimates would
have to give such low estimates that
but few would give their applications
for insurance to it.
Right here / would like to say that
life insurance-the plea to an unself-
ish thought-falls on hstless ears in
most cases unless a selfish chance Of
self-gain Is presented with 1t. How
ever I think it would be best to re-
quire that no estimates of profits be
offered, except Illustrations of actual
results, should you permit continuance
of offerings of agency stock.
There have been several agency
companies formed. all of which are to
pay the State Life for the territory re-
ceived@a plan, by the way, which
ance to the policy holders, as this
money is paid into the general surplus
of State Life to be distributed as divi-
dends to all policy holders.
In the Great Western Agency COM
pany, as in others of similar charao 4er
the stock loaned to the policy holders
any one getting a 1000 policy gets a
share (par value $4,000 in the agency
com Dany. As all are treated alike
there Is no Notwithstanding rates
of commission paid to the agency COM
the majority of companies to general
agents; in fact, are less than contracts
have been reliably informed are Of
fe-ed by some companies.
G~~r@s~R GA~~@~-%-