The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-10-24
GO SLOW, HE WARNS.
IN INSURANCE WORK
e. r. Rhodes Declares Various
@ Reform Proposals Should
3g4 ta..@ o.! +. >t..,. --y. .a.E
Be Carefully Sifted.

st. Louis, Oct. 2T.-Ihe second DAY 8
session of the annual convention of the
National Association Of Life Under
writer's was opened with an address by
=. +. Rhodes of Newark, N: j.. on
2 Problems of Insurance Law
A warning against the reforms pro-
posed by honest, tho uniformed, men
and emphasis of the need of sitting
thru the complexities of the several
laws proposed recently to separate the
good and the bad, was cast by MI.
Rhodes. - ~
During the year four public bodies
have expressed their views regarding
the form of legislation required in
view of the disclosures Of life insurance
mismanagement,' he said. e'These
four bodies are the New York legisla-
ture, the Massachusetts commission, the
committee of fifteen appointed at con-
ference of governors. attorneys general
and insurance commissioners, and the
select committee OF the British house OF
lords.
.'The laws enacted by the New York
legislature cannot be said to represent
the views of the legislature. Forced
upon that body by memorable political
exigencies, backed by a party caucus,
the right Of the individual members to
exercise their own Judgment was denied.
"Freely acknowledging that there Is
good in the Armstrong laws, I cannot
Be too emphatic in stating that they
are not a model, because they were
drafted by inexperienced men who saw
only one phase, because they are based
upon local conditions, because they deal
with details rather than with princi-
piles, and because they were neither
prepared nor enacted with due delibera-
tion.
~ sThe Chicago conference cannot be
said to be representative, except of the
western and southern states. The com
mittee Of fifteen is mainly composed Of
commissioners from states in which nc
large life insurance company Is domi
3ciled. At st. Paul, where it met to de-
ternine what legislation it should rec
ommend, there was no official from the
great insurance states of Massachusetts,
Connecticut, New York, New Jersey OF
Pennsylvania Nevertheless, this com
mittee has commended itself to thought
full people more than has the Armstrong
committee.
Praises Bay State Commission.
q "The report of the Massachusetts
Commission shows such evidence OF
careful deliberation, such absence OF
political considerations, such desire tc
conserve public interests, that 1t at
TRACTS TO .1tSelI Dy us own weight LAe
greatest consideration.
i "The system Of supervision in Great
Britain differs so greatly from that OF
this country that the report Of the
English committee bears little upon the
plans under discussion in America. Like
the report of the Massachusetts commits
sion, it evidences sound thinking an6
intelligent comprehension of the sub
ject. It deals principally. with the ssug
gestion that special deposits be required
from foreign companies for the protec
ton Of British policy holders, in ex
cess of the deposit Of 100000 required
of domestic companies. The conclusion
that such deposits should not be re
quired is based upon six reasons, thu
principal and controlling ones Of which
Z are that such a course would violate
4 the principle that the whole Of thu
funds Of an insurance company shoult
\ be available for the claims of all policy
holders alike, and that the public igh
Tbe led to suppose that the solvency o.
the companies was guaranteed by thu
government.
"With some slight notifications tn
provisions Of the law proposed by A
Z I. Vorys, chairman of the subcommitte
on standard forms of the Chicago con
ference, which stipulate what shall b
Incorporated in every policy and wha
shall not appear therein, will be foun
Il to meet most satisfactorily the obliga
lions Of the state to protect its cit1
. zens, and will at the same time avoi
the dangers of statutory forms.