Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1907-01-09

panies of foreign countries, so as TO
provide for licensing and dealing with
them on the basis of their assets and
liabilities in the United States.
Life Insurance.
The subject of life insurance has
commanded more attention and discus
sion in the last two years than any
other. The magnitude of the amounts
involved, and the number of persons
directly interested. make this one Of
the most important subjects to be con-
sidered at this time.
Investigation Of companies and their
methods were taken up, first by the
armstrong committee in New York
and followed by other committees, com
posed of governors. attorneys general
and insurance commissioners of va
riouS states.
Certain existing laws should be
amended. and other laws enacted in
order to protect more perfectly the
thousands of policy holders in these
various companies who are citizens Of
this state.
The funds Of these companies should
be as perfectly conserved as can be
done by human agency, because they
are. in a large measure. the only pro-
lection of the widow and the orphan.
Among the most important of the
subjects To be considered are the fol-
lowing:
(aD \ change of the basis of re-
serve valuation from the actuaries' (
per cont TO the American experience
3b per cent. II is difficult TO find such
safe investments as life insurance com
panies should make which will net
per cent. interest. This change is in
harmony with the best thought and
practice in connection with this sub
ject.
Oh Standard provisions, perfectly
protecting the equities OF the insured.
should he Incorporated In every policy
sold in the state.
(c) No life insurance funds should
he used for any political or other SINH
lar purpose.
Oh The wording OF the certificate
required in Clause II, Section !, law Of
1899. should be changed. as the pres
ent reading is not only susceptible Of
miscOnstructiOn, but can he readily
used 10y INSCRIPTIONS managers and
agents grossly to deceive the public
and bring Odium on the state.
(e) Proper legislation should he en-
acted TO protect members of both reg
ular and assessment life insurance
companies from unfair treatment in
case of the relnsuring Of such COM
panieS. and any new certificates or
q al
clearly define the rights and equities
of the insured.
~ Perhaps the most important sub
iect for consideration is that of divi-
dends. The recent investigations have
shown that the annual accounting of
dividends. or surplus. has kept man.
agements honest and conservative. The
long deferred distributions have led to
extravaganza, if not dishonesty. In or
der TO insure economy and security ii
seems wise to require that managers
handling large trust funds should he
checked up mt frequent intervals. De
ferred dividends can he safely writ
ten provided the surplus accruing he
apportioned yearly. and charged as
liability by the company. A statement
OF SItn surplus SliOhiA w iba 'ia'A'''a
the policy holder each year. If not de-
ferred for too long n period this VIII
enable a young company to establish
itself without endangering the equities
of it's policy holders.
Determinations.
(gl The act of June 10, 1891, to pre-
vent discrimination by life insurance
should be so amended as to
make this evil msdemeanOr. and
should apply to the insured as well as
to the company and its agents.
On 4 law should he enacted to pro-
feet holders of deferred dividend pol
icies already in force. in the distribu-
ton of surplus accumulated on their
account. \ statement should he re-
uuired of the annual credits on ac-
count of such surplus which should be
charged as Il liability by the COM |
panies. This is not retroactive but a !
of future good faith in the |
handling Of such funds.
On In the matter Of the election OF /
trustees of mutual life insurance COM
panies. the voting should he made as
simple and effective as possible, either |
Dy mali, III peTSoh' VI ny pi"N!'
G A law should be enacted pro- |
hibitiug the organization of additional |
life insurance companies i'm |
this state, other than fraternal socie- |
ties. or the admission of such com |
)anies from other states, and amending
and charging the scope of the annual |
statement to be made by them 10 the !
insurance department to cover every !
possible detail of their business; also
1 law providing for the periodical eX-
of such companies. and the |
prompt publication of the results of |
such examination.
01) No corporation or ctock COM |
lany should be licensed as the agent |
If any life insurance company in So |
letting. selling, or in any manner plac- (,