The Plymouth tribune. (Plymouth, Ind.) 1901-1911, 1907-07-11
y Y v Y y Y y Y Y Y y y Y u
: BANE OF THE LIFE
. INSURANCE COMPANIES
IN INDIANA HAS BEEN
LIFTED AT LAST
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Especial Correspondence

luuidildpOllS, lnu., July lU.-rOr tne
first time in recent years-the only in
stance in the history of many compa-
nies-special contracts are not being
written by life insurance companies
doing business in Indiana. 1t is likely
that this bane of the life insurance
business will be no longer experienced
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 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 ia
compel the companies to cease writing
a policy that is generally believed to
I've burden to the vast majority of
policy holders who do not have special
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
took chance and they acquiesced in
| his demands.
Big 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 hol lers cost
them Is. 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
| 500, 000, 900 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 were 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 bnsi-
ness since the auditor made his 'ul-
ing, but they were not strong enough
to stand up and make fight within
the laws as the auditor interpreted
them.
It is believed that as the result OF
the action of the companies the insur-
aace business in this state will soon
be on a much stronger foundation and
that 1t will be only g matter of a very
short time before Indiana takes first
rank as the home of insurance compa.
niles 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
ocrats against them was the clause
forbidding the writing of special con-
tracts When these bills were de.
feated 1t was not thought that there
would be any insurance reform for az
| least two years The insurance men
who had fought the bills were In high
glee, believing that their victory would
/ be permanent. 1t develops, however,
that they reckoned entirely without
their host and that this desirable re-
the servants of the people who were
nominated snd elected by the Repub-
lican party.
I 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 Babcock-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 political master
stroke, but a little later, when they
thought they could play more politics,
they reversed their actions and caused
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 i'm 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
l A. ~ e. L.