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

ing business in the state within two
months after the adjournment of the
legislature to file with the secretary Of
state an itemized statement, duly veri.
fed, showing in detail all expenses paid
or incurred in connection with legislaz
ton pending at the last session, includ-
ing all disbursements or compensation
,paidnor payable to counsel or agents.
Exception may be made Of the duly
accredited counsel of municipalities,
public. boards and public institutions,
and also of the ordinary professional
services in drafting bills or advising
Of proposed or pending legislation wheres
the prof service isfnot otherwise
connected with legislative action.
EViolation Of the law should be
made a misdemeanor and the failure to
file the statements required should sub
sject that offender to appropriate pen:
- =: - Companies' Expenses. r.,
,,. The committee deems it inadvisab1e
to- recommend that the legislature at.
tempt, to prescribe the expenditures Of
insurance interpretations. The legisla-
ture cannot undertake the management
Of the business. S& In seeking to secure
economical administration it should not
overstep the line which divides suitable
state supervision from an utterly i'm
practicable effort to prescribe details.
The legislature should aim to permit
freedom of management subject to gen
eral regulations and complete publicity.
For example, it is deemed unwise to
limit salaries by statute, but it should
be provided that all salaries Of officers
and the compensation of any other per-
son receiving over a certain amount,
say $4,000 in any year, should be fixed
by the board Of directors and not by
any committee thereof, or by any ex-
ecutive officer, and should be reported
in the annual statement to the super
intendent of insurance. IT,: :. -
The evidence, however, makes it clear
| that the most wastefm expense lies in
| the amount paid for new business. Some
| Limitation of the expenses in getting
| business is, imperatively< required. 9th
erwise there is little reason to doubt
| that there will be a continuance of the
| present extravagant methods.
The committee does not recommend
| that the rate of commissions be pre-
| scribed by law. It is recommended that
| commissions should be uniform
Bonuses, prizes and rewards and other
special Inducements based upon the
size of particular policies Or upon the
| aggregate of insurance written should
| be prohibited. All commissions should
| be definitely agreed upon in advance
and should be a fixed percentage Of the
premium for each $1,000 of insurance
It is also recommended that renewal
commissions should be limited to four
| years and to a certain percentage, say
10 per cent Of the first years commits
sions, so that the general restrictions
| placed upon the first years expenses
j IL ~ b. al
vances to agents should be prohibited.
| Valuations Of Policies.
! The committee recommends that the
law be amended so that minimum
standard for valuation Of policies other
| than industrial should bek established
and SO that preliminary terms in the
valuation Of policies issued after 19Oe
should not be. permitted. The superin
tendent Of insurance should be required
toffx legal minimum standard.
Rebates.
The law as to rebates is sufficiently
stringent, but as a further precaution il
is recommended that the penal code
should be amended so as to provide thai
a person receiving a rebate should b.
equally guilty with the one who
Surrender Values
I With regard to new policies the pro
visions Of the statutes should be liberal
lied and the insurance in the absence Of
notice from the policyholders should bs
automatically continued for it's full &C
count as long as the reserve upon hi
policy will justify.
i Surplus.
The committee recommends an an
nual accounting and an annual distri
button, the companies protecting
. themselves against fluctuations ii
values by the ACCUMULATION and The
|; retention Of reasonable contingent
fund. The maximum of this fund tt
! be based upon a percentage of the me-
valuestof outstanding policies.
Non-P Participating Policies.
The committee believes that mutua