The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-08-24
INSURANCE AGENTS
MUST BE TRUTHFUL
Committee Recommends Measure
Forbidding Misrepresentation
in Advertising Matter.
LOANS ON BONDS MUST
BE AMPLY PROTECTED
Holding of Reai Estate Except for
Company Uses Will Not
Be Permitted. -

The committee Of fifteen of the ma
tional organization of insurance COM
missioners was busy today in receiving
reports of subcommittee and approving
drafts of bills for uniform legislation,
which, if adopted, will make a material
difference in the operation of the big
old-line life insurance companies. The
committee was called to order in the
capitol, St. Paul, today at IL am.
The report of the committee on mis-
representations, including the draft Of
q bill, was approved. The draft. as
presented today, included the following
Important section: ~
mo life insurance corporation, Off
Ger, director or agent, shall issue or cir
culate any estimate, illustration, clrcu-
lar or statement in any part mlsrepre,
senting the terms of any policy issued
by it, or the benefits or advantages
promised, or the dividends or share OF
surplus to be received thereon; nor shall
any company use any title of any pol
icy, or class of policies, misrepresentlng
the true nature thereof +
The committee on investments, H. R.
Prewitt, Benjamin F. Grouse and Ed
ward T. Young, presented a bill, in
part a copy of the New York law,
designating what investments shall be
allowed.
AS to Investments.
It provides that emo domestic life
company, after June l, 1907, shall in
vest in or loan on any shares of stock
of any corporation other than NUM-
cipal corporation, nor, excepting gov-
eminent, state or municipal securities,
shall it invest in or loan upon any
bends or obligation which shall not be
secured by. adequate collateral security
or for more than one-third of the total
value Of the collateral security. Every
such corporation which, on June l, 1907,
shall own any shares Of stock other
than public stock Of municipal corpora
tions whenever the same shall have
been acquired, or any bonds or obliga-
tions of the kind above described, or
said bonds or obligations shall have
shall dispose of said bonds and obliga-
tions within FIVE years from the 3lst
day Of December, 1906, and in each
year prior to expiTa ton Of said five
years, shall make such reduction Of its
holdings that lay be approved IN writ
ing by the superintendent of insur-
ance.' H. E.- ~
Loans on improved unincumbered
real property are allowed to so per cent
of the value Of such property.
Property Restrictions.
Restrictions as to real property are
as follows:
First-Handling of such property as
shall be requisite for the convenient
transaction Of it's business.
Second-Such as shall have beer
mortgaged to it in good faith.
Third-Such as shall have been con
veyed in satisfaction Of debts previ
ously contracted. .....-.
Fourth-Such as shall have been pur
chased on Judgment DEGREES and mort
cages.
All such real property is not specified
in the above subdivisions, not necessar.
for the accommodation and convenien
transaction of business, shall be dis
posed of within five years after tn
company shall have acquired title t.
same, or within five years after tn
same shall have ceased to have bee
necessary for the accommodation of it
business. Such property shall not b
held for a longer period unless a eel
tifcate is secured from the superinter
dent of insurance. -
The committee on fraterna1s, of whic
Edward r. Young of Minnesota is chair
man, reported thru J. A. Hartigan, Mi,
ACoobtl . dSIueily
Laws for Fraternals.
The committee s report was long.
holds that laws governing fraternal
should provide.
Tirst-That the rates be not les
than those indicated as necessary b
the national fraternal congress mo-
tally table.
.Second-Reserve must be accumulat
ed according to this table.
The committee recommends tina
fraternal society members shall hav
full information in regard to amount
paid out for expenses. Moneys n
ceived by the society should be divide
into three funds, first, for payment {
current death losses; second, reserv
fund; third, an expense fund.
The committee further recommends:
Tirst-That no new society shall /
organized or admitted to any sta
after July, 1907, that does not collie
adequate rates.
Second-All societies in any sta
should collect adequate rates from ne
members admitted after January, 100
.Third-Members paying adequa
rates should be in a class by the1
selves. 49,.
Fourth-Policy contracts should !
limited to whole life and term life po
cics.
Fifth-All securities representing i
vestment of reserve fund should be
posted with the state treasurer
other state officer. #
Zeno M. Host, commissioner of Wi
consin, this afternoon presented lo1
report strongly advocating compulso1
annual distribution of dividends to pc
Icy holders.
This evening the committee expec
to draft standard form of life polio
Standard Policy Form.
Late yesterday the committee of
teen adopted a bill presented by G.
Adams Of New Hampshire, providil
for a standard policy and having t
entire contract recorded in the polio
= and that the agent writing the busine
In event of any controversy be co
ii sidered the agent of the company al
not of the assured The Minneapo]
Life Underwriters association pr
s scented the committee with typ
written address, in which they recol
I'm mended conservative action, that Il
changes in present laws be few and ge
FaSa era, opposed annual distribution
dividends, but advocated strict a
Continued on Page 6, 5th calumn.