The Montgomery advertiser., 1908-02-17
IS PUT OUT OF THE STATE Mutual Reserve Ordered to Cease Business. COMMISSIONER JULIAN AcTS Followed Appointment of Receivers
 in New York. Secretary Juliaa Thought This Neces- sary to protect Interest of the
 PoIieyheider. In
 Alabama.
COMMISSIONER JULIAN ACTS

As sequel to the action of the New York Insurance Department In declar- ing the Mutual Reserve Life Insurance Company of New York insolvent. the approval of this course by Attorney General Jackson of New York and the appointment of receivers. Hon. Frank N. Julian. State Insurance Commis- sioner of Alabama, Saturday ordered every agent of the Mutual Reserve in this State to cease writing business.
 This step on the part of the Alabama Department, was not altogether unex- pected, as they have been holding the matter under advisement for several weeks past.
 Any official action regarding the Mu- tuual Reserve Life is awaited with in- terest in Alabama, as there are about 1000 policyh elders scattered throughout the State, according to the last annual report made to the Department here. On December 31. 1906. the company had in force policies aggregating s2.124.64i, representing the protection of 1.ObS policyho1ders.
 Most of these policyholders are on what is known as the ~assessmeut" basis, which was the plan of operation of the Mutual Reserve up until the year 1902. when 1t changed to the legal reserve basis The oifer was made at the time of the change to all assess ment policies to transfer their policies to the level cost plan by payment of the difference between the amounts they had previously paid in and what they should have paid at legal reserve rates. Several transferred to the legal re- ee1Se plan and the differences in rates were charged as a lien against the face of the policy.
 A few days ago all the assessment po1icyholders of the Mutual Reserve, formerly known as the Mutual Reserve Fund Life Association, received notices of radical raises in their assessments. or. rather, heavy extra assessments, from which 1t was proposed to supply the deficiency reserve fund made nec- essary by the adverse ruling of the New York Department On the charac- ter of a certain class" of securities not admitted as assets.
 Since the numerous extra assessments of the past few nnotthA in this conn pany, the policy elders of Louisiana and New York State have been trying to organize themselves in bodies for mutual protection and to make .. thor ough investigation of the condition of the company. Then the New York Department. having supervision over the home office, intervened and started the comapny on its way to receiver ship.
 Col Harry R. shorter, the Southern Division Manager of the Mutual Re- serve. and State Agent Charles E. Dex- ter of Birmingham, came Co Montgom- cry Saturday night for . conference with Commissioner Julian.
 Commissioner Julian, almost at the same time he suspended the Mutual Reserve, directed the Metropolitan Mu- tual Benefit Association. eolored com. pany, to quit operations in this State. This is an Atlanta concern which has been operating intensively in Alabama for q number of years. Until ecently 1t was In the purely mutual aid" class. but launched forth short time ago on the ordinary plan
 The cause given for suspending this company Is their failure to pay accrued claims when called repeatedly to the attention of their agents and officers. According to the 1906 reports of the concern, trey had in Alabama l.692 policyhoIders, representing total busf- ness in force of $T0,SS0.