The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1909-06-29

by 1t was not given at the time. The
department is now able to furnish
such Information, not only as to these
ten companies, but as to all tho
th1rty-four life companies doing busi-
ness In the state, and based upon fig
ures resulting from its audit of their
annual statements OF December 81.
1908. Annexed to the report ara ta-
bles, based upon these statements.
giving the official figures of increase
or decrease, as we'll as total insur-
ance IN force, new business written
in 1908, and contingency reserves, or
so-called safety funds, of all of the
companies doing business in New
York.
Wrong Construction.
The report calls attention to the
fact that. from the figures furnished
from unofficial sources, certain con-
ciusions have been drawn which in
dicate a considerable misapprehen-
sion as to the proper methods of in
terpreting life insurance statistics in
general and as to the standards by
which the results of the amended in
surance law of New York should be
measured. 1t then proceeds to dis
cuss, among other things, the uues-
tion OF new business written, as
bearing on the total amount of ex-
penses, assets and dividends.
"Conceding that-as has been fire.
quently stated in the press-there
has been q notable falling off during
the past three years in the business
In force of New York companies, as
compared with an increase in the
business of non-state companies, the
report directs attention to several
matters which have heretofore been
ignored.
Chief of these is the large total of
examinations by New York companies
from lapse, surrender, and the like, 1.
e., other than from maturity or NOR
tality. Thus, in 1908, the largest New
YORK company cancelled policies, for
causes other than death or maturity.
aggregating upwards of s14O 900 900,
or approximately the total of new
business written by it. On the other
hand, statistics already published by
the department show that the largest
non-state company cancelled, for
similar causes, less than SAL, ,OOG, 900,
while it wrote upward OF $112 900 900
OF new business.
The report shows that these losses
from examinations, while large now,
were much larger in 1906 and 1907.
The report. therefore, concludes that
the falling off in the business of the
New York companies during the past
three years is natural result of tho
investigation which began in 1905
and the disclosures. having to slo
particularly with such companies,
that followed
Change In Policies.
Another cause which the report
emphasizes is that. prior to the in
vestigation, practically all of the New
YORK companies were peculiarly de-
ferred-dfvidend companies, /. e., were
writing the class OF policies which was
most criticised by the investigation,
Their agents. having been instructed
to urge this class of insurance have
not yet been able to readjust their
arguments and activities to the an
nual-dividend and simpler forms OF
policies now required by the law. In
this connection the report says: "Oi
the eight New York companies which
decreased their insurance in force,
all, with the exception of two small
companies which suffered for other
reasons, had been out and out de.
ferred-dividend companies. OF the
three companies of other states
which showed decrease in insur.
ance in force, all had more deferred
dividend than annual-dividend busi-
ness on their books, while of the
eighteen companies of other states
which showed gains. all but five-one
of which has always been practically
a non-participating company-had
more annual-dividend than deferred
dividend insurance on their books,
and. In the aggregate, manys times as
much. 1t is fair general con-
clusion, from the above facts, that an
important reason why the New York
state companies have decreased in in
surance in force is because, as
class. they were deferred-dividend
companies. Similarly We may con-
clude that companies of other states
have increased in insurance in force,
not necessarily because they happen
ed to be incorporated elsewhere than
in New York, but because, as a class,
they foresaw. years ago, the nemesis
which must sooner or later overtake
any business involving virtual prom
ises which are not fulfilled, and acted
accordingly"
while thus recognizing the falling
off in the New York companies and
the causes therefor, the report brings
out the fact that, while the New York
cmpanies went backward $126, ,00O,-
100000 in business in force in 1906.
the decrease in 1908 was but $4,000
900; showing gradual recovery
from the effects of the facts brought
out by the investigation.
New Blood Fallacy.
apparently in answer to recent
public discussion as to the limitation
of $15O,000,000 of new business en-
forced by the Armstrong amendments
the report gives the percentages of
new business written to new busi-
ness permitted of each of the thirty
four companies. clearly indicating
that but one New York company
was, by any possibility. affected by
such limitation, and that. had the law
applied to non-state companies doing
business in New York. not one of
them would have been within striking
dista Of s,,ch limitation II olso