Perth Amboy evening news., 1907-03-06
Report of The Commission Named
to Investigate New Jersey
Companies Received Today.
SEVEN BILLS INTRODUCED TODAY
Report Gives the Result of the In
yestigatiOn Conducted - Several
Pages are Devoted TO the Pruden-
tial Insurance Company Alone
Recommends that Laws be Chang
ed and Seven Bills are Suggested.
Special to the EVENING NEWS:

Special to the EVENING NEWS:
TRENTON, Mar. 6:-Senator Hill
lery today introduced in the legisla-
ture the seven bills recommended in
the insurance report which was pre-
cented today.
The document reviews the probing
conducted by the committee, recon-
mends number of important chang
es in the insurance laws and submits
recommendations
The report states that the commit
tee made a special study of the re-
port of the Armstrong committee in
vestigating committee in New York.
Then it is shown that there are on
ly four life insurance companies
holding charters under the state of
New Jersey. These are the Mutual
Benefit Life, the Prudential, the Co
lonial and the North American Life
of Newark. Several pages of the re-
port are devoted to the Prudential
company.
The proposed legislation reported
Is as follows: An act to provide for
the appointment by the governor of
state directors of stock life insurance
companies. These are to be added to
the board of every company and their
expenses and compensation are to be
paid by their respective companies.
Their powers and duties to be the
same as the regular directors. The
compensation to be not less than $40
per meeting.
An act to limit the capital stock,
dividends and distribution of assets
of stock life insurance companies.
Capital stock is limited TO $2,000,0O0.
Dividends mus not exceed more than
ten per cent. of the par value of the
stock so long as the company contin-
ues to issue participating policies, or
so long as it has outstanding partici-
pating life insurance to the extent of
one-tenth of it's total insurance in
force.
An act to require an annual ac-
counting apportionment of surplus
of life insurance companies. Requires
companies annually to ascertain the
amount of surplus to which deferred
dividend policies are entitled and to
apportion the amount to the policies.
No company may use this surplus for
any other purpose whatsoever.
supplement to the general in
surance act. Regulates the form of
life insurance policies and lays down
specific provisions for such policies
Prohibits such policies from contain
ing certain provisions not deemed
equitable. Prohibits companies from
paying any salary, emolumant or
other compensation of more than
$4,000 year unless such payment is
duly authorized by. the Board of
Directors. No such life insurance
shall agree that for any service rend-
cred by any officer, trustee or em-
ploye 1t will make payment for more
than twelve months, and no officer,
director, trustee or employe who re-
ceives more than 500 a month for
services, shall receive any other COM
pensation. Limits gross assets of
companies to $400,000,000.
"a supplement to the general insur-
ance act. Provides for temporary
capital for mutual companies so as
to give some guarantee to policy
holders before surplus accumulates
sufficiently for their security. Limits
investments life insurance companies
may make. No company may invest
in more than fifteen per cent. of the
stock of any corporation. Requires
more detailed statements from in
surance companies for the purpose of
securing more publicity in their af-
fairs.
An act to amend the act of 1895.
This prohibits discrimination between
the insured of the same class and in
the commissions and compensation
paid to agents upon participating or
non-participating policies.
A further supplement to the Crimes
act. Makes it misdemeanor pun
ishable as such for any insurance cor
poration to pay or offer to pay any
money to any political party for poll
itical uses. The, penalty will fall up
on any officer, director, stockholder,
attorney or agent who aids or abets
such contributions.