The Newark star and Newark advertiser. [volume] (Newark, N.J.) 1909-1909, 1909-08-05

officer or officers in the township, city
or taxing district where the principal
Office of the association or corporation
is located, upon the cath of the presl-
dent. secretary or treasurer, or other
officer of such association or corpora
ton; in stating the liabilities on poll
cies the basis of such statement shati
be the value of such policies at the
date above mentioned in this section
and not the gross amount insured
thereby, and such value shall be ac-
cording to the computation of the same
by the commissioner of banking and
Insurance of this State by such stand
ard of valuation as nay be adopted
and used by him at the time of such
computation shall be made according
to law
What Are Liabilities.
Life insurance companies are entl-
tied to deduct from the full amount or
value of their property the amount OF
their debts and liabilities, but in stating
or estimating the liabilities on policies
issued by them and then utstandin
they are confined to the present values
of such policies at the time when they
make their statements; namely, on the
thirty-irst day of December next pre-
ceding the statement. The exemption
they are entitled to is the present value
of their outstanding policies, according
10 the computation of the same by the
commissioner of banking and insurance
Of this State.
ANY liability of the company ON
account of these deferred dividends Is
a liability upon policies. l understand
these deferred dividends do not, in
anywise, add to the present values OF
policies outstanding. understand they
are what is known as semi-tontine pol
icies. These deferred dividends are
PAYABLE to the survivors of a particu-
lar class. and do not affect the present
value of the policies. If a person in
sured under one Of these policies dies
before the maturity of the policy or
s%urrenders his policy before its matur-
ity. he does not participate in these de-
ferred dividends ! understand these
deferred dividends go to increase the
payment to the survivors of the class;
that is to those who have survived the
periods named in the policies. If a pol
icy of this class were payable to the
insured, his legal representatives or
assigns ana the insured DSNdihC III
solvent or bankrupt, the policy would
have a certain surrender value; but |
do not understand the value of the
policy at the time of the insolvency
or bankruptcy of the insured would be,
in anywise, increased by these de-
ferred dividends.
As to Different Dividends.
Il do not see how these deferred
dividends add to or in anywise affect
the present value of the policies; and
| think it is very clear from the act
referred to, tina the liabilities of the
company upon its policies, which may
be offset against the full amount or
value of their property, are the present
liabilities calculated upon the present
values of the policies.
IF these deferred dividends increase
the present value of the policies, it
should be and probably is included in
the calculation of the COMMISSIONS of
banking and insurance. and should not
be allowed against; if not so allowed,
1t is probably because the department
recognizes that they do not Increase
their present value.
II think. therefore, that this item of
s14.623, 279.37 should not be allowed as
a liability of the company upon its
policies to be deducted from the full
amount or value of its property
The text of the opinion regarding the
second item is not quite ready.