Omaha daily bee., 1908-06-04
LIFE INSURANCE PAYMENTS
Almost Half a Billion Distributed
During Last Year.
OMAHA GETS NEARLY A MILLION
immense sum of s4T4,OOO,OOO Paid
in Claims and Dement'S by Com
panies In United states
and Canada

and Canada.
Life insurance organizations distributed
in 1907 in the United states and Canada,
1851, us, 500. according to computations
by The Insurance Press. The payments
in 1906 amounted to S327,576,1s9; 1905,
1907, 0is,s 72. In these computations the
figures are of the amounts paid TO in
sured persons or their beneficiaries in
the forms Of death claims, matured en-
dowments or other benefits under the
policies of Ievel-premium companies or
the certificates of assessment organiza-
tions. The amounts paid by the regular
companies in dividends to po~licyholders,
on surrendered policies, on claims In
foreign countries and to annuitants are
hot included
standardization of life insurance pay
ments Of all kinds in 1907 would give the
following;
Claims paid in United States.
u. S. possessions and a
Payments for dividends and
for surrender values and to
foreign policy-holders and
annuitants (estimated) 80. 12S,ooo,ooO
Grand Total .S4f4,ll9,oSS
That the increase OF the claims paid
III lSUt UNoH tioot pau III @SNN "G ~
larger must be attributed, TO a consld-
cradle extent, to the effect of the restrict
I've legislation that followed reform asi-
tation.
The effect must be continued during
several years to come. 1t cannot be
ignored, not even passed over lightly, for
the facts are that in the past two years
life insurance companies have been re-
stricted. by legislation ana by the weak
ening of confidence through agitation, in
providing neutrality-suspicious. absolute
ly needed, If anything in this world be
needed by those dependent on others for
i support.
Claims Less Than Possible.
New ordinary and Industrial insurance,
issued by about $50 companies, in 1907,
having been about S4Ts, 0O0, 900 less than
hat issued by about lilo companies in
1905, the claims presented for payments
were not what they might have been.
Families or estates were thereby de-
prived of millions of dollars of insurance
money. The loss is indicated by the fact
that fifty life insurance companies In
the United States and Canada, reporting
to The Insurance Press. paid in 1906
S4,64s,9S9 on 2.2O9 policies for ordinary
insurance held by persons who died within
one year after Issuance of the policies.
The comparatively small increase oi
the insurance in force throughout the
country at the close of 1907 indicated also
the effect OF restrictive legislation,
although many companies began bust
ness last year.
The financial disturbance In the three
CLOSING months Of the year had some
effect undoubtedly on the new business
but nothing like that OF restrictive legis.
lation.
The financial disturbance, in another
respect, had an effect that was greater
than anything OF the kind in the history
of life insurance. The increase of tn;
loans on policies by 81 companies. report.
ing to the New York department, wal
S72,5S732o, as with the Increase
of 327, 279. 1885, for 43, companies, in 1905
Although an element of danger in :
period Of financial panic. loaning on poll
Ieies was maintained. and it was NO
recorded that a single company, in thu
New York record, defaulted on it's obli
cations to loan. Such loans in the pas
have not been repaid; and beneficiariei
have been the sufferers IN account o
the reduction OF insurance protection, bu
1t has been notable in the past tire
months that several of the big companies
have reported the repayment of consid
cradle amounts on loans made last year
Of Confidence.
An indication Of the renewal of polio,
holders confidence In the ability Of the 1T
insurance companies to maintain their con
, tracts was the d-iscontinuance Of ordinar.
insurance to the amount of 1891, 10000 Il
Twenty-Five regular companies as com
pared with $52s.sOO,Ooo in thirty-one com
panies in 1906. Estimating the death rate a
l per cent, the families of those who lap
sed their premium payments lost more thai
; 49, 800, 900 in 1907.
Another indication Of the renewal OF con
fidence wae the surrender Of policies to tn
! amount OF sos. $1,000 of ordinary INSURANCE
in twenty-nine companies as compared wit
&207, $40, 600 in thirty-one companies in 1901
The disturbance in business affairs wa
undoubtedly a factor in the surrender o
policies, as in borrowing on policies. las
year.
The distribution of these vast amount
OF insurance money throughout the countr
was not IN any way that Of charity; neithe
/. was It the settlement OF a gamble, Ri
calculations made years ago. were for tn
claims TO be presented, and the principle
OF life Insurance were simply maintained b
the subscriptions to and the withdrawal
from the funds.
In thousands of cases the receipt of in
surance money meant the saving OF homei
the better care OF the sick, the comfort Q
the aged, the education OF children, or re-
! lief In various ways that might otherwis
? have been required OF relatives OF disburs
1 ers under poor-relief laws. Yet. life insuI
ance was taxed again to a burdensome ex
tent.
, During the year 1907 over 200 cities in tn
United States ard Canada received NOR
: than 10000 each from the life lnsurano
companies. In this distribution Omaha r.
ceived SSl1, 431, coming thirty-second in III
list.
4 Summary by States.
n Amounts OF claims paid by life insuranc
\ organizations in each state and In t%erritoriG
possessions Of the United States and !
Canada during 1907:
Z Alabama ''.''''''"",'.".,""....$ $751;:
q Alaska 8,H
Arizona OBSERVATION-DISCLOSURES, 44S,Sl