The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1908-10-08
PRAISE LOCAL LAWS
Modern Woodmen Leaders Claim
Wisconsin's insurance Laws
Are Best in the Nation
URGE STILL FURTHER SAFETY

Wisconsin insurance legislation is ad-
mitted by experts to be far in advance
of that of any state in the country, ac-
cording to j. f. Egan, private secretary
TO Col. Halves, grand secretary to the
Modern Woodmen of America.
Mr.. Egan said Wisconsin was the
first state. to pass laws which really
give policy holders a voice in the man
agement of mutual companies.
Mr.. Egan said that further advances
in insurance laws will be made by Wis
consin and other states at the coming
sessions of legislatures, particularly
with reference to fraternal organiza-
tons. In most states the laws relative
to fraternal insurance societies are far
from satisfactory, and as a result of
a paper read by Col. Halves at the con
vention of insurance commissioners in
Detroit some time ago it is expected
that reforms will be urged in many
states.
"tThe great need for fraternal socie-
ties is the establishment of some sys-
tenn by which the policy holder may
know Just what the condition of the
company is saia Mr. Egan. ''This
has led to the movement for the enact
ment Of a valuation law for fraternal
societies as well as old line companies
In most states old line companies are
required to make an annual valuation
Of their condition, but very few states
require this Of fraternal organizations,
for some reason or other.
'phe idea is that the organizations
shall take stock Of their condition at
least once year. That is they shall
determine from an examination income
against obligations growing out Of con
tracts contingent upon death, just what
their chances of meeting those obliga-
tons are. This can be done accurate
ly so that each society may be able to
inform policy holders whether the
amount of their policies will be paid
at DEATH.
g For years the problem of dealing
with fraternal insurance societies has
been a vexed one. Some companies
for instance, are stricter in regard to
occupations, age and residence Of their
members than others. Some fratern al
societies will not admit men who are
engaged in certain specified occupa-
tions of particularly hazardous charac-
ter; they have low age limits and per
sons residing in localities known to be
unhealthful also are barred. Now, in
fixing minimum rate, which shall APP
ply to all societies, it works injustice
to some organizations and deals too
leniently with others.
"The valuation system will do away
with the uncertainty of the minimum
rate law. Every company, old line
and fraternal, will have to furnish to
insurance departments and policy-hold-
ers statement Of condition which will
show on its face just how much policy
in that company or society is worth.
The system provides further a means
by which those companies which are
not in position to meet their obliga-
tions can regain financial stability.
"This could be done by assessments.
or readjustment of rates in such way
as not to work hardship and in other
ways. The companies should be re-
quired to show an annual gain in assets
and ability TO meet obligations, thus
reducing the hardship on policy hold
ers.'
Mr.. Fgan said that the time is at
hand when fraternal and old time mu-
tual companies will be placed on the
same footing before the law. Under
present conditions in many states there
are two sets Of laws dealing with these
two branches of life Insurance. The
reform legislation in many instances
will be introduced in various legisla-
lures at the request of the insurance
departments Of those states.