Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1907-04-17
ACTUARIES FILE
THEIR PROTEST
STATE OBJECTIONS TO LIFE IN
suRANcE BILLS.
BIG COMPANIES UNITE
Experts Join Hands in Setting Forth
Their Reasons Why Proposed New
Laws Should Not BE Enacted in
Wisconsin-Wrone in Principle
and Impracticable.
Madison. April 10

Madison. April 10
Representatives of eight leading in
surance corporations last night filed a
printed brief in protest against five
CT the most important insurance bills
before the legislature. The brief is
submitted by Oscar B, Ireland of the
Massachusetts Mutual, J. G. Crawford
of the Northwestern Mutual Life, R.
Henderson of the Equitable Life, f. H.
Johnston of the Prudential, William
A Hutcheson of the N1'.ua1 Life, w.
II. Pierson of the New York life, J..
NJ. Emery of the Des Noinss Lie. and
E. E. Rhodes of the MGual Benefit
Bill No l, that is 319s and 6S4a
are dismissed with the objection that
the meaning of a number of actuarial
terms defined in the bills is in direct
conhiet with recognized textbooks
and the usage of actuaries
The bill which relates to policy val
uation is declared to be open to FIVE
very serious objections, most import
ant of which are:
1T permits company to escape,
in some cases, any reserve liability in
the early policy years, thereby ieopar,
dizing the stability of the company"
Legislation would be so widely var
liant from that in other states as to
work hardship on Wisconsin com
panies attempting to operate in other
states and upon companies of other
states attempting to operate in Wis
consin.
The bin requires an impracticable
and misleading table Their sugges.
ton on the valuation law is to estab-
fish a minimum standard of valuation
affecting policies hereafter to be is
sued, and that Wisconsin accept the
valuations made by other states. if
they exceed the Wisconsin minimum
The bill which proposed to limit the
premium which may be charged is de-
iclared utterly wrong in principle, be-
cause it prohibits premium charges
for contingencies, because it ignores
state taxes on premiums, because 1t
permits q rate for short term policy
greater than whole life policies, be-
cause il would provoke violation OF
the anti-discrimination laws of othe:
states by making premiums in Wis
consin different than in other states.
They further contend that the bill is
unnecessary because the tendency is
for lower rates anyway. and that It
is col trary to public policy because
the company should not be restricted
in the exercise Of its judgment if held
to stri.t accountability
Bill No. 10 is declared to be OBJ
jectior able because 1t calls for a sep
arati9A of general expenses and in
gestment expenses on Wisconsin bust
ness from aggregate general and in
vestment expenses. which separation
is a physical impossibility They ia
vcr a limitation of the first years ex-
| rsrses in relation to the new rdslness
/ if it does not Interfere with the stat
utes of other states.
Their objection to bill No 8. relat-
/ ing to forms of policies, Is that it is
defective and wrong in principle and
would exclude companies from other
states from Wisconsin business on ac-
count Of retaliatory laws. We favor
standard policy provisions" they say.
which fully protect the interests of
poiicyholders but which do not pre-
scribe the ph-aseology to be used. "
Industrial insurance should be, except
ed from the foregoing bills as they
are not applicable to such kind of in
suraHee. The protest concludes as
| fellows:
Speaking as actuaries and not as
/ the representatives of companies. in
our opinion based in some cases upon
existing laws and in others upon es-
tablished actuarial principles, com
pany should not continue TO do bust
mess IN Wisconsin if its laws pre-
scribe a maximum limitation of pre-
miums, method OF valuation which
would exclude expense factors. q def
mite setting aside of a specific por-
tion of the premium in the several
policy years for expense. form of
policy or any provision in policy
which would not be permitted under
the law of the state in which the com.
pany is domiciled, discrimination be-
tween Wisconsin policyholders and
those of other states"
Committee Hearings.