Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1907-10-08
SYSTEM ONE
life insurance Plan of Paul
kersch Adopted by New
Savings Bank Life.
BANKS ARE MADE AGENTS
Details to be Explained at Meeting of
Industrial Commission and Bust
ness Men at the Club.

A revolution in the practice of life
insurance which will remove every evil
hat has crept into the business is
laimed for the Paul Kersch system
which has been adopted by the Savings
Bank Life Insurance company of Hi
nOis recently organized by Paul kersch
Of this city, and Milton Denney and
James l.. Ferguson of Chicago. A meet
ing of the Rock Island Industrial COM
mission will be held at the Rock Island
Club tomorrow evening to consider the
question of cooperating with the Off
GERS of the company with the object Of
securing the headquarters for this city.
Secretary Levy, on behalf of the COM
mission, today issued an invitation to
IOthers interested to be present at the
meeting and hear the project fully ex-
planned.
The Argus has previously published
details regarding the organization of
the Savings Bank Life. 1t is to have
surplus. Before beginning businesses
| LOCO shares of stock will be sold at
$3.50 q share, $4,000 to be deposited
according to law with the authorities
of the state of Illinois as a permanent
guarantee fund, and the balance, $4O,-
| ON will he hr u-npl-ipor FOL 81 IA
company. Business will be established
simultaneously in Illinois and Iowa.
Features of the system Many.
The essential features of the system
which Mr.. Kersch has devised are:
l. Divorcing the investment depart
ment from the insurance department.
2. Providing against concentration
| of capital by investing reserves To-
cally.
8. Confning the company to its lie.
Ultimate field of securing and supervis.
| ing risks.
4. Eliminating the expensive agency
| system as now conducted.
.. Securing cooperation of local
bankers, who handle reserves.
6. Simplifying every department OF
the company.
I. Simplifying policy contracts.
s. Simplifying and expediting trans
actions with policy holders.
8. Dispelling the mystery with which
the business has been surrounded.
The evils which have crept into the
life insurance business may be traced
it is said, almost without exception, tC
the great accumulations of money in 1;
/ common center, under the control of .
few men.
i Originally the loaning of money was
mot contemplated in the institution O
life insurance. Experience proved, how
lever the absolute necessity of main
tanning reserves, based upon scientific
calculations, and the proper invest
ment of these reserves came as a nat
J ural consequence. III this manner near
1 ly all of the functions of the bank have
been incorporated, one by one, into thu
institution of life insurance.
I Under the Paul Kersch system thest
great inter-dependent financial institu
lions meet on common ground, ant
work in harmony, each carrying on thu
part for which it is best adapted.
j Under this system no funds belong
ing to the policy holders are sent t.
the home office of the company for in
1 vestment. All premiums are collecte
by local banks, who will retain on dc
post to the credit of the company,
Sufficient amount out of every premium
collected (from One-half to two-thirds
to maintain in the bank the full lega
reserve on the policies in connection
with which the premiums are paid
II The balance is RENTED to the home OF