The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1907-07-02
BANE OF THE LIFE
COMP AN|ES LIFTED
There Has Been a Marked I'M
provement in Insurance
Field in Indiana.
SPECIAL CONTRACTS OUT.
SADIE WILL BE A BIG GAIN TO
THE PUBLIC THAT BUYS IN
SURANCE.

Indianapolis, Ind, July 2-For the
f. -lae on>,- ia
stance in the history of many compa-
nies-speciaI contracts are not being
written by life insurance companies
doing business in Indiana. 1t is likely
that this bane of the life insurance
in this state.
All of the companies ceased writing
special contracts the first of June, not
by their own volition, but as the re-
suit of a decree issued by Auditor of
State Billheimer. That this great re
form in the insurance business has
been accomplished is due entirely to
the fearless position taken by the au
ditor of state and his determination TO
compel the companies to cease writing
a policy that is generally believed TO
be a burden to the vast majority %
policy holders who do not have specia
contracts.
Many of the companies protested
against the decree of the auditor, but
the latter stood his ground and in
formed the companies that unless they
ceased the special contract writing he
would bring suits to mandate them
to obey the law. There was some
question as to whether the auditor
could compel the companies to give
up writing special contracts, but he
ot,o in,
his demands.
Bio Gain for Public.
The result of the auditors crusade
will be a big gain to the public that
buys insurance. Experts figured re
Gently that the burden of special con.
tracts on the other policy holders cost
them 10 or 20 per cent annually on
their policies that they should have
received in dividends. In view of the
fact that there is probably more than
s100, 100000 worth of insurance in
force in this state, the annual saving
to the policy holders can be appre.
ciated
Many of the companies objected to
the auditors demand on the ground
that it would put them out of business.
This appeal came from some of the
younger organizations that we're at
tempting to build up on an exclusive
special contract basis. 1t was the
opinion of the experts connected with
the auditors department that it would
be unsafe to permit any of these com
panies to continue writing special con.
tracts. Three or four have quit bust
ness since the auditor made his rul.
ing but they were not strong enough
to stand up and make a fight within
the laws as the auditor interpreted
them.
1t is believed that as the result OF
the action of the companies the insur
ance business in this state will soon
be on much stronger foundation and
that it will be only a matter of very
short time before Indiana takes first
rank as the home of insurance compa
MES that can be relied on.
Republican Reform Accomplished.
One of the principal features of the
insurance bills defeated during the
last session of the legislature because
of the almost united stand of the Dem
forbidding the writing of special con
tracts. When these bills were de
feated it was not thought that there
would be any insurance reform for at
least two years. The insurance men
who had fought the bills were in high
glee, believing that their victory would
be permanent. It develops, however
that they reckoned entirely without
their host and that this desirable re
form has finally been accomplished by
the servants of the people who were
nominated and elected by the Repub |
lican party.
Apropos of the result of Auditor Bill |
heimer's demand, it may be stated
here that the Democrats were con.
sistently opposed to insurance reform
during the recent session of the legis |
lature. The only time they were ever
for the Babceck-Farber bills was when |
they thought they might put the Re |
publicans in a hole. Then their lead |
ers sent out the word that they must
support the measures. They thought
they were playing a political master
stroke, but a little later, when they
thought they could play more politics
they reversed InelT dctlOuS anu CduSSO
the death of the bills. Those who
were in close touch with the Demo
cratic leaders throughout the session
knew that they never thought serious
ly of the proposed reforms in the in
surance business and that they never
cared to take any position except in
hopes of embarrassing the Republi
cans.
Under these circumstances the re
form that has been accomplished By
the auditors department is all the
more significant Not only has the
writing of special contracts been
stopped, but under the new laws en-.
acted by the recent legislature the
auditor is enabled TO keep such close
tab on the life insurance companies
that the opportunities for fraud have
been minimized.
The auditor has new deputy in the
insurance department who Is giving
such close attention to the securities
deposited by the insurance companies
hat they will not have any chance Of
muffin o-uu worfhlesss uaDer as a guar