The Irish standard., 1907-03-09
Presents REPORT
ON RISK Concerns
COMMITTEE OF NEW JERSEY
SENATE MAKES SEVERAL
COMBINATIONS.
FAVORS LIMITING
OF CAPITAL STOCK
Also as to Amount of Dividends to Be
Paid Stockholders from the Profits
Bills to Carry Out Plans Pre-.
sented.

Trenton, n. j., March 7.--When the
senate convened Wednesday Senator
Hilley, of Morris county, presented the
report of the special committee ap-
pointed last year to investigate the
subject of life insurance in New Jer-
sey. At the same time he presented
seven bills, drafts of which were en-
bodied in the report, to carry out
the committees recommendations.
In it's recommendations the commit
tee has drawn freely from the report
of the committee of is which was sub
lnitted at the conference on uniform
insurance legislation last December.
The committee Of is was appointed
at a conference of governors and at.
torney generals and insurance COM
missioners at Chicago February /,
1906
Mostly Devoted to Prudential.
BY far the greater part of the re-
port is devoted to the Prudential, the
largest of the four companies under
investigation. Principal among the
recommendations is one that bill
Uo CAdCLSu lillllLl1S2 Lllc dllOuAC vi
capital stock which any life insurance
company may have to $2,000,000, and
the dividends which may be paid
thereon from future earnings, SO long
as the company continues to conduct
the participating life insurance busi-
ness, to ten per cent. upon the stock;
and providing that upon the dissolution
of the company the stockholders Of
the company shall have, out of the ul-
innate distribution of assets, not
more than two dollars for one dollar
of the face value of their shares.
Recommendations Made.
Among other recommendations
We're: Provisions for the appointment
by the governor of three directors Of
every stock life insurance company
these directors to be persons having
no interest in the stock of the corpor-
, alton; limiting the amount of stock
which any insurance company may
hold in any other company to Is per
cent. of the whole, and that where a
company holds more than the amount
so limited it shall dispose of the ex.
cess within five years, providing that
no life insurance company shall in
vest more than two per cent. Of it's
own assets in stock Of any other cor
poration or more than ten per cent.
of it's assets in the bonds of any other
corporation; restricting child insur-
ance; requiring more detailed state
ments of the affairs Of insurance conf
panies for the purpose of securing
more publicity with respect to their
affairs; requiring the examination of
three years, the examination to be
brought Immediately under the direc.
tion Of the insurance commissioners: !:
prohibiting contributions to political
campaign committees: that after jan
uary 1, 1908, no domestic company
shall write both participating and non.
participating policies, and requiring
: all stock companies to elect on or be-
fore September of this year whether
they shall conduct participating or
non-participating business after the
following first day of January; and
a provision that an annual accounting
be made to policy holders by classes
of the portion of the surplus belong.
ing to them and the setting aside
of such apportioned part of the sur.
plus to their credit No recommenda.
tions were made bearing upon foreign
insurance companies except those
which prescribe certain provisions
] which must be in every policy.