Northern Wisconsin advertiser. [volume] (Wabeno, Wis.) 1898-1925, 1906-07-05
MAY ADVISE LAW
OF MINIMUM RATE
LEGISLATION NEEDED FOR FRA
TEREal ORDERS.
HOST BEFORE COMMITTEE
State insurance Commissioner Says
Economy Of Management Must be
Strength of Acknowledgements
Changes in Interest of Security
and Protection.

Milwaukee, June 29.-Legislation
compelling fraternal insurance COM
panies to charge a certain minimum
on assessment before being allowed
to transact business in Wisconsin
will probably be proposed to the Wis.
lconsin legislature as a result of the
discussion of fraternal insurance be-
fore the Wisconsin life insurance in
vestigating committee.
Two major points as basis for
these premiums may be recommended
They are:
| Adequate rates from new mem
lbers.
2-Sufficient premiums to create a
reserve for the protection of all the
company's contracts. :
Representatives of nearly all the
lfraternal organizations doing business
were present at the meeting, some
Us fraternal insurance society officers
Having registered at the session
The representatives of nearly all
the associations admitted that higher
rates must be charged in the future
by these organizations than have
been charged in the past. Such strong
lfraternal insurance men as James E.
Ea9an of the Modern Woodmen of
America, w. A. Walker of the Ancient
Order of United Workmen and Judge
Belden of the Royal Arcanum admit
ted higher rates must prevail in the
future
The initial feature of the session
was an address of Insurance Com
missioner Host who while demonstrate
ing his belief in fraternal insurance
as the ideal form of insurance said
regulations must be established
! During the past ten years." said
Commissioner Host, "and especially in
the last three and one-half years,
have devoted much time, study and
thought to this subject. For time,
felt that the reforms needed must
come from within these societies 20
which the experience of the past
must point the way; but since | have
had the opportunity to come in direct
contact with the officers of a great
many of the fraternal societies doing
business in this state, have learned
that there exists among them gea
eral feeling that it is impossible to
bring about a better condition in
these organizations without the aid OF
legislation, for all of these societies
will not adopt adequate rates unless
1 10 do hx CT f,tn
requirement Very few of the officers
have the courage to place the rates
of their societies upon an adequate
basis when they must meet In compe-
tition, other societies that remain OF
the death assessment or inadequate
eate plan. Only recently, the Sec
rotary of a fraternal society admit
ted in conversation with me that he
knew the rates of his society were
inadequate but If the rates were in
creased, another society, the name Of
which he mentioned, would continue
to solicit members charging only its
present inadequate rates, and his SO
ciety being in competition more with
that particular society than with any
other would secure very few new
members. Therefore, his society
continues to collect inadequate rates
and the large percentage of the mem.
bership believe they are procuring
safe and permanent insurance.
j 1.-The majority of the officers OF
these societies appreciate that with
out considering that as men grow old
er the death rate increases-that
young men may die, old men must
and making provision for the ir-
creased number that must and DO
die, failure is as sure and certain as
is the fact that no man, set of men
OF institution can for any length of
time give something for nothing. Too,
they know that there are just three
ways in which safe and secure life
insurance can be furnished, be 1t old
line or fraternal insurance.
i Three Requisites to Safety.
Il. The premium to be paid from
year TO year for fixed amount OF in
surance must be an increasing amount
at all times to cover the full current
or actual cost according to the az
tanned age of the insured.
"2. The premium to be paid may be
fixed amount, as of age at entry,
while from year to year, as the In
sured grows older, the amount Of la
surance is reduced, being graded at
all times to the actual and mathemat.
ical purchasing power OF the amount
paid.
"3. The premium must be sufi-
cient to enable the creation Of re-
serve fund sufficiently large ON eacn
policy to make up future deficiencies
or to equai;ze the increasing hazard
Of increasing age.
/. Great Hope in Reserve Fund.
"The first two plans are almost I'm
possible. or at 1east, would be IN
J popular In other words. instead OF
increasing the premium from year 70