Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-01-17
INSURANCE MEN
PLEDGE REFORMS
System OF Special Inducements
To Stimulate Business in Utah
To Be Discontinued.
PROMISE TO BE GOOD NOW.
Secretary of State Receives Assurances
Through the Mails Today from u
Number of Companies.

Secretary of State Charles S. Tingey,
as ex-offcio insurance commissioners,
has taken up the matter of the issuing
of special contract policies by insur-
,ance companies doing business in this
state and as the result of his labors
all companies doing business under
the scheme of special Inducements TO
stimulate business will be required
to discontinue the practise. The ground
upon which this action has been taken
is that ii is discrimination in favor
of one policy holder at the cost of an
other. The holders of the special con-
tract policies receive certain benefits
which the holder of the ordinary policy
{ is denied. Dissatisfaction results and
die regtfiar policy holders allow tlieh.
policies to lapse. In the end 1t is be-
ieved that the financial soundness Of
the concerns Will be threatened. For
this reason Colonel G. b. Squires.
deputy secretary of state, has written
TO all companies issuing the special
contracts, advisory board contracts or
stock option policies directing them to
discontinue this sore of business The
purposes were outlined before the Utah
Association of Life Underwriters by
Coloner Squires at their annual ban
quot last Saturday evening. The COM
panies affected by the new order are
the Colorado National, Great Western,
West Coast and Kansas City Life
SCRANTON TURNED DOWN.
One company, the Scranton Mutual,
applied for license to do business in
Utah, and has been refused admission
to the state. The reason assigned by
the secretary OF states Office is that
In the policy written by that company
there was included a special induce
ment In the form of a stock option. Col,
Squires is of the opinion that the COM
pany is unsafe with this feature IN
its policy.
SOME PLEDGES.
In letter received today by Secre-
tay of State Tingey, the Colorado Mu-
tual pledges itself to issue no more
special contracts.
The secretary of state is also In re-
ceipt of a copy Of the special announce
ment sent out to all agents with re-
gard to special income policies. The
action Of the Great Western company's
officials Is in line with the suggestions
and demands OF the insurance depart
ment of Utah.
From the Continental Life Insurance
g. Investment company, IA company or
| sani2ed under the laws OF Utah, Sec
| rotary of State Tingey also received
a letter this morning, pledging the COM
| pany to solicit no more business undei
| special Inducements.
The West Coast Life Insurance COM
pany has replied 10 the letters sent out
also pledglng itself to conform to TIL,
requirements of the new order, Tn,
letter was received today
| The Capitol Life Insurance company
| Of Colorado was the first TO acknowl.
| edge the receipt of the letter advising
insurance companies OF the new ruiz
of the Utah insurance department. Tn,
| company states in It's letter that II Il
! pleased to see the move taken.
KANSAS CITY LATE.
owing to the greater distance a
which the home office of the Kansa
City Life insurance Is located, no wor,
has been received from them in repl,
10 the notification sent out by the sec
retary OF suites office. The acknowl
edgment is expected 10 come within
| day or two and the secretary OF stat
"a OF the opinion that the company vii
willingly comply with the requirement
The action taken by the Utah insur
ance department Is In line with insur
nnce reforms in other states and
the result OF careful consideration Q
every phase OF the Insurance bushes
from the companies standpoint az we
az the policy holders'. Officials IN var
lous states having supervision OF In
surance affairs believe that the now re
quirements made of insurance compan
les. particularly life insurance compan
ies. win result IN great good, both
the companies and 10 the policyhoider.
preventing "A recurrence or scandal
such as were uncarlhed In New for
I Il l. L. II ~ L..-.. LLL-l