The Denison review. [volume] (Denison, Iowa) 1867-current, 1906-12-27
WOULD Change laws
Iowa Insurance Commission to
Make Important Report.
MINORITY WILL DISSENT.
Deferred Dividend Policy Proves Bone
of Contention Among Iowa
Legislators.

right to file minority recommend
alton relative to deferred dividend
policies.
The minority report will be filed as
soon as prepared. Commissioners
Jamison. Bleakly and Clary directed
Secretary Byrkitt to hold their report
and not to file it until future date.
The commission did not adjourn sine
die.
The majority of the commission has
prepared an elaborate defense of the
deferred dividend policy and recon-
mends against Legislation restrictive
of its issuance. despite the recon-
mendations of most Of the other
states. of all the insurance superin-
tendents' organizations and the pas
sage of laws by the state of New
York. No restriction of salaries and
other expense will be recommended
by the majority.
Commissioner Kendall may decide
to go to the extent of recommending a
law prohibiting deferred dividend pol
icies altogether; Commissioner Jones
may join with him. though he has
regarded an absolute prohibition as
at this time. Both are
opposed to the plan of the majority.
and they will urge legislation. they
declare. in the interests of the poiicy
holders. instead of the companies. by
insisting on laws requiring individual
annual accounting of the companies
with their policy holders and the linn
itation of expense loading. to protect
the surplus so accounted for.
For Uniform Fire Policy.
The most important thing in the
report of the commission is the pro-
vision recommending the enactment of
a statutory uniform fire policy. This.
in effect. will set aside the effect of
the present Iowa law which has been
so construed, and in terms makes an
insurance agents representations a
part of the contract.
This recommendation also original
ly included the repeal of the Iowa
law against co-insurance which has
been Endorsed by policy holders. and
which the auditor of state vigorous
ly defended, Next to the repeal of
the Blanchard law the repeal of the
statute prohibiting co-insurance is
desired by the fire companies.
Regarding Beneficiary Societies.
The second most important and
drastic recommendation is that re-
lating to fraternal BENEFICIARY societies.
It urges the passage Of a law to pre-
vent the organization of these socie-
ties in Iowa except inthe fraternal con-
gress mortuary cables. It is recon-
mended, also. that the present. fraternal
societies be required, within four or
six years. to get upon the same basis,
The term to be fixed is left to the
legislature. no recommendation with
respect to it being made by the COM
mission.
The prohibition of all other COM
panies which pay death loses on the
basis of assessment of surviving mem
bers is recommended by the commits
ion. except the companies which are on
illegal reserve basis. Domestic con-
Germs coming under this head are to
be given time to get on the legal
reserve basis.
The establishment of an insurance
department separate from the office
Of the auditor of state, who now is
in charge of insurance. is recon-
mended. The commissioner of insur-
ance will be appointed by the COVER.
nor and confirmed by the senate.
The legislature is urged to inves-
tigate the desirability of fire mar
shall system.
A law limiting the earnings Of
stock in stock companies engaged in
insurance in Iowa to 10 per cent, il
/ p4OPOSO0 Wy CllO
Uniform Provisions Recommended.
A large number of uniform provi.
sions to be required in all life insur.
ance policies are proposed by the
commission. One of these is thai
the policy shall be the entire con.
tract. Others provide that represen-
tations in absence of fraud shall moi
be regarded as warranties: that the
policy holder shall participate in
surplus; that loans shall be made
equal to the reserve value. after
three years: that stipulated insurance
shall be issued in case Of lapse after
three years. equal to the reserve
value, and settlement shall be COM
pulsory after sixty days from death.
A law is proposed to fine COM
panies $25. to 500 for each policy
received from a noncommissioned
agent: but no law affecting the COM
mission paid agents is thought by
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