Watertown leader. [volume] (Watertown, Jefferson County, Wis.) 1909-1911, 1909-05-28
COMPANIES TO RETURN
INSURANCE LAWS NOW SAID TO BE
SATISFACTORY.
Runored in Madison That Four Concerns
Which Left State Have Decided to
Resume Business.

MADISON. Wis, May 26.-[Special.1
Some of the life insurance companies
that packed up their books January L,
1908. and left Wisconsin because they
objected to the Badger brand of life
insurance laws, are coming back. This
is the word that has gone out in Madi-
son and it seems to be pretty well con-
trmed. The understanding is that four
we'll known mutual companies and two
stock companies Will put up their shin
giles again within u month or two and
resume the solicitation Of business. The
four mutual companies which are eX-
pected to come back in July are:
The Penn Mutual Life Insurance COM
pany, The Connecticut Mutual Life In
surance company, The Massachusetts
Mutual Life Insurance company, The
National Life Insurance company Of
Vermont.
While it is said that two stock com
panieS are returning becaueS of certain
alterations made in the insurance laws,
their names cannot be ascertaned. 1t IS
known, however, that they are not
among the larger companies The Mu-
tual of New York and the Equitable
will not return; this is known to be Il
certainty.
The basis for the return of the COM
panies is chapter 120 of the laws of
1909, which was bill SPA of the pres
ent Legislature. This measure makes no
change in the law of two years ago, but
simply defines the construction placed by
the state insurance department upon the
meaning of the term expense charge" as
used in connection with those laws. The
amendment is TO 1946S of the revised
statutes and was suggested by the in
Surance department itself because of the
desire of officials Of some of the cOmDa-
MES for the exact definition. At the time
of the enactment OF that law on Imlta-
ton of expense these officials claimed
that under the definition which the Wis
cOnsin statutes gave for an expense
charge, valuation would be demanded
on policies under what is known as the
modified preliminary term plan of valua-
ton. Such & construction was foreign
to the intent of the law and never has
been applied by the Wisconsin commits
SiOner.
The most important insurance legisla-
ton of this season is the passage of the
insurance valuation law. The bill has
passed both houses and now is Ill the
governors hands. BY reason of the de-
feat of one of the bills recommended by
the joint insurance committee two years
ago this state has been without stand
ard of valuation of policies since 1907.
There has, however, been on the statute
books a law specifying what funds must
be in the hands of a company before
any dividend could be paid and under
this law the policies have been valued
as heretofore.
Bill 415S, now in the governors hands,
provides for valuation of ordinary forms
of policies under any one Of the follow
ing systems:
Level loading, modified preliminary
term or Dawson select and ultimate sys-
tens.
Thus policies can be valued on the
basis of money really held by the com
pany and also that form of valuation is
permitted which permits the higher re-
serve now fixed by some companies.
4 section of one Of the bills passed,
SPA, does away with the demand that
annual statements of companies shall be
sent to each policy holder.