New-York tribune., 1909-04-22
NEW YORK LIFE

The amount 81 insurance secured by these
companies mas shown a heavy decrease during the
sane period In the New York Life the new pre-
! niums received have decreased from a40oooo in
n 1915 3 so 1868 In the Mutual Life the de
f,r the period has been from 5000 600
3 $1,000. The f5quItable from IS 500co1 to
s2.724 eo0 The ratio Of premiums TO renewal
premiums mas shown the following decrease: In
the New York Life. from p 50 per cent TO 7-53 per
cent the Mutual fron. 1913 Ter cent 10 5s3 per
cent. and in the BE from 17O5 per cent 10
5.ss per cent.
We therefore see that in these three companies
the amount Of in force has teen steadily
decreasing. ana that The ratio Of infusion Of new
life has heen steadily decreasing With this condi-
tion prevailing. result. and only. must fol
low: tha; is Jhe mortality ratio must eventually
icrease, and probably that increase is already be
ing felt.
Il is impossible FOR rs u obtain detailed analy
sis r the mortality Of these three companies dur
ing the period covered n this discussion, but the
following ratio may give some Indication of what is
taking place The percentage Of Payments for
death claims TO total insurance in force during the
last six in the New York Life has increased
from 6e7 per cent 10 III per cent. in the Mutual
tho increase has been from 13l cent 10 80 Per
cent and Equitable from iso PEI cent to l53
per cent. For n certain period the saving in ex-
Hense, 10y reason Of th= small amount Of new bust
written. VIII be sufficient 10 Offset The increase
in death claims. but IL is 10y no means healthy
sign her a company decreasing its insur-
ance in Force. nor Il this situation WHICH can be
viewed with equannaity by tie persistent policy
ho!GeI.
EFFECTS OF LOAN PROVISIONS
IN the PAST il WAS a recognized principle in the
conduct Of life insurance business the interests
of the persistent policyhoders should be conserved
70 the greatest extent, and a substantial charge
was made against those poiicyholders VINO retired
which charge was, Of course. a source of profit 10
policy holders who kept up their contracts. This
Of income Il decreasing owing u the liberal
provisions of the standard policies which are re
CURED under the New York statute The decrease
IN this former proht is matter which the per
sstent policyholders viii realize more fully in the
future 3.ut the effect OF the change must Pnt be
forEotten analysis Of the results Of The pres
sn; law
The prime object of life Insurance is to protect
The insureds dependents against the inevitable less
which results from his death The standard poll
c!es at present prescribed BY the New York law
contain tia liberal loan provisions. These
IcanE are guaranteed, and the companies must
stand ready make good the guarantee at any
time on immediate notice from The insured These
loans used in the majority Of cases 10 keep
the policies in force hut the policy becomes quick
collateral, which upon The slightest proNocation'
can be used asset BY the holder OF the policy.
Loans 80 made The peiicyholder decrease the
arnoun; II protection which his dependents receive
II the of hs death. and nv such loans. unless
they are used for the purpose Of continuing the
poi:cy. the object Of life insurance is in part de-
featea.
Il Is nc, by any means an encouraging sign to
see these loans increasing they have during the
last six years by reason Of the great publicity
which has been given 10 This privilege and b.
Of the that the attention of the policy
holder has been called 10 privilege which, in
many instances. he previously ignorant Of
The figures are certainly astonishing In the New
York Life since 1893, the loans policyholders
have increased frJ s5l 10000 SS7015OJ0: in The
kirtuaI from sle.008e00 ss20eo.e10 and in the
Equitable from Ns.eeac00 10 s57.0oocoo, and OBJ
Viousiy she protection under the policies in these
companies has oeen decreased by. these amounts.
The criticism Of the present law Is limited TO
TIE officials Of New York state companies. whose
opnson regarded by many possibly influenced
by their personal interest
A BRITISH VIEW OF LAW
George Kiag. T. / 4. and r. r. A. consulting
sctuary of Londen. in commenting she present
Nes York State lar. said:
! think viii found very speedily that The
new laws viii seriously and in1uriously hamper
the conduct and development OF life assurance
business. and il Is the public who viii suffer.
Therefore anticilate that before long there will
he q strong reaction and thar the restrictions now
imposed VIII be greatly relaxed.
lie further SAYS:
believe that governments should conane them
selves merely seeing thHt the companies give 20
the public the fullest possible information on every
important point Since ls7a .his principle Of nb-
Kingdom. and has been productive o: untold good.
lie says further:
Were reEtrictlons 70 be imposed, responsibility