Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1907-06-27
FR|CKE VALUATION
PLAN DEFEATED
ASSEMBLY PASSES INSURANCE
REFORM BILL.
RESULT Of INVESTIGATION
Smaller Companies Present Strenu-
uous Opposition, Declaring That
BIG Underwriters Will not be Hurt
by Proposed Premium Statements
Speaker Ekern Leads Debate.
Madison, June rs.

Madison, June 70.
ReDudiating as their guides the
actuarial writings and opinions of
former Insurance Commissioner w. A.
Fricke and Miles Dawson, and choos-
ing to support the insurance inVesti-
eating committee and its actuary, Pro
lessor Glover after d two hours de-
pate, the assembly yesterday passed
the first of the insurance reform
measures by an overwhelming viva
vOce vote. The bill provides for a
system of valuation of policies which
may be adopted by companies doing
business in this state and requires
the filing of a schedule and incorpor-
alton into the policy of detailed
statements as to he expense, deposit,
interest etc, which compose each
premium The bill passed was one
recommended by Professor Glover
and the insurance Investigating com
mittee and came from the assembly
committee on banks and insurance
W.Lh an adverse recommendation
senting and fayoring the Investigate
o~s' bill
The bill recommended by the com
mittee report and which was rejected
by the assembly was what was known
as the "Fricke valuation plan" 1t
provided for the select and ultimate"
method of valuation such as is in force
in New York, and was opposed most
strenuOusly by the smaller companies
doing business in this state for the
reason given that it would seriously
hamper them in conducting their bus
mess when it would not i'll the least
hamper the large New York cOmpan-
les who came into this state.
The entire debate on the bill re-
solved itself into a pitched battle be-
tween Speaker Ekern and Assembly
man Cleary of La Fayette, both
of whom showed a thorough knowl-
edge of the situation and supported
their sides Of the case in an able
manner. The strongest debate Oc-
Cured after the Fricke substitute had
been rejected and the investigating
committees bill was up for Considera-
tiOn. At this point Assemblyman
CIeary offered an amendmeIS which
would eliminate from the bill the sec
tiOns requiring the statement by the
companies of the detailed information
regarding expenses and deposits. Mr.
Cieary COntended that the giving of
such information would be at the
best misleading since the expense
could not be accurately guaged and if
accurately given would not clearly
present what the insurance was actu-
ally costing the pOlicyhOlders. He
commended that requiring this state
mcnt i'll the interest of publicity mere
ly would be an incentive to insu1~
anCe companies to cut their expenses
until they got down to such a basis
that they were no longer financially
sound.
Speaker Eken's contention in the
main was that the requiring of these
detailed statements would serve Sim
ply to- translate into plain English
what the insurance companies now
serve out to the ordinary layman in
h. ~Aiy technical language which none
but insGl4mce attuaries could under
stand.
AssembIyman Bancroft made A
singing speech i'll which he pictured
the state of mind of the ordinary leg