New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-02-23
FOR ANNUAL DIVIDENDS
STOP DEFERRED PLAN.
Cash or Reinsurance Aduocdted-
To CompeL annual Accounting.

Cash dividends for the policyholders or tho
application of the dividend to reinsurance or the
reduction Of premiums is the slogan OF the COM
mittee in dealing with the distribution of tho
surplus Furthermore. it insists that the man
agement of the companies should give an annual
accounting. The issue of the so-called deferred
dividend policies In the future should be for
hidden, says the report. The committee says on
this subject:
AS the precise results of the continuance in bust
fall as well as rise in value it IS important that
The company should ba provided Win esentingsnt
sh9aIa be permitted aeogmuiats such fund
Surplus in exees Of such eonngeh fund should
IN equity be returned TO the holders OF partici-
Be practcabe for their ascertainment .-''
This return should be effected in such manner
in which, through their payments. they have con-
The deferred dividend policies had conspicuous
& Tor the companies as they pegmftsd
out accounting A large proportion OF outstanding
Insurance rance Is Of this form and it Is said that II
popularity has been largely due the representa-
tR deusVe havs BEEN aG ne %
the efforts OF the companies to extend business OF
this class through the payment OF larger commits
sons than were allowed for other forms of insur-
veil as the dlminution in annual dividends has no
Go46t been Que TO extent to the
But 1t has been more largely due to the wasIefui
possible by the vast accommodations permitted by
this form of insurance.
any legal equitable obligation with refersncs to
d r aTabs to sF5Ss
for other OUTLAWS which would have been checked
by suitable system Of accounting. Thus the
extravaganza and facilitated corruption.
Ii is the opinion Of the Committee that divl-
bends should be distributed annually, beina ap-
pied either In reduction of premiums or to the
purchase OF additional insurance, paid In cash,
at the option o. the insured. No attempt should
be made to disturb rights under existinq con =
tracts, but the Issue of so called deferred divi.
dend policies in the future should be forbidden,
OF al the reforms suggested by the COMMITTEES
meSSS' II Is peHeyed Is mora imperatvely de-
PEELED TO exhibit the results of their manapsment
be left as they should be- to the
OF the directors. they should be compelled each
year TO state the results of their administration
and to come under definite liabilities ~ the no1ov
entitled. ~ ''e1 as'
The management should be subjected n +b.
tGsI on pacing annually it's Accommodations at tho
GlsP9saI or the polioyhoIders, leaving them TO
oeciae whether they shall be withdrawn NJ tb.v
are TO De lett with the company, IL should bs -
me option OF the policyholder through the Dur
s,,its :, ae as insurance. In this manner
anu tne company IS placed under whoesom.
aho' IL Is believed, necessary, restriction
Inc Committee recommends that anv life ,n.,,,
Company DONG business in this State shall he
the gains attributable policies Wits OF
70 Le eAteht or the following percentages Of tba
the legal minimum standard to wit: @Ne''o 'hs 10
When such net values are less than 500 600 % na-
greater T2ter. , "''''''eVer Is Inc
where such net values are greater than 100000