The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-02-22

companies and stock companies char
tered to transact business on the mu
tual basis or holding themselves out as
transacting business upon this basis,
should be forbidden from writing non
participating policies.
Remedies Of Policyholders.
Assuming that the funds belonging
to pohcyholders thru the opportunities
afforded by deferred dividend contracts
have been wasted thru lax and cor
rupt administration and that not only
have the shares of profits for policy
holders been determined by secret and
! arbitrary methods of computation, but
that poicyholders have been denied
an opportunity to seek relief in the
courts, the committee recommends a
repeal of the existing law which pro-
vides that action by the attorney gen
}eral should be a condition precedent
to an order, Judgment or decree for an
accounting and that the matter should
be left subject to the general provis-
ions of the articles Of the code relating
to actions against corporations.
Forms of Policy.
The committee recommends the
adoption of standard forms of poll
cies, simple in form and in clear and
| concise language, to be approved by
that the issue of other policies than
those thus provided for Shall be pro-
hibited. The recommendation as to
the compulsory issue Of standard forms
| does not extend to the policies issued
| by assessment or cooperative assOcia-
| tions or fraternal societies.
The committee recommends that the
| life insurance companies be required
to report in their annual statements in
| such manner as shall lay bare the
innermost workings of their business.
Taking up the penalties to be set upon
violation of such requirements and of
the state insurance law, the report
| goes on:
t.The violation of any of the pro-
visions Of the law should be made a
misdemeanor. The provision of the
| penal code as to perjury should be
amended so as to provide that in any
prosecution the falsity Of the testi
mony OR statement set forth in the in
dictment should be presumably estab
lished by proof that the defendant has
made oath to the contrary. "
The provisions of the penal code
| as to the misconduct of officers anC
employees Of corporations should be
amended to make clearer provision fol
cases of false entries in books anC
accounts and the omission from the
reports Of any matter required by Law
to be stated.
Evils Disclosed. 4
"Apart from what has already beer
suggested, the committee is not pre-
i pared to make recommendations will
reference to industrial insurance furthe
than to say that the subject is one de
serving Of special investigation. Th
most serious evils which have been dis
closed by this inquiry, to-wit, the ex
cessive premiums, the enormous lapse
| rate and the hardships Of the agents
! seem to be inherent in the system. 1t i
| insisted that the present method is tn
most economical that has yet bee
proved to be adequate to the exigencie
Of the business. The alternative seem
! together industrial insurance by prlvat
corporations or Of permitting its COZ
tinuance substantially upon the presen
basis, subject to those regulations de
signed to secure economical adminlstra
ton, applicable to all companies alike.
d AS to State Officials.
i The committee takes up the stat
insurance department and holds tina
the state superintendent of lnsuranc
has had ample power and has bee
charged with the correlative duty t
inquire into and to ascertain the trans
actions of insurance companies to tn
end that abuses may be exposed an
correct administration assured. The su
pervision of the department, however
the report sets forth, has not proved
sufficient protection against extravs
gance and NEUTRALITY-SUSPICIOUS.. Annus
statements have been received and file
In many instances without sufficient de
. tail to exhibit the real efficiency or hor
esty of the management. Nor has ther
, been suitable effort to detect and e1
pose evasions of departmental require
} ments and the resort to artifce an
double dealing in order to avoid a tru
disclosure of the companies affairs.
Referring to the office of the insul
d ance department. in New York city. Il
charge of Robert H. Hunter, the repor