The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1910-01-19
POLICY HOLDERS
PAY FOR LACK
OF UNIFORMITY
Fifteen to Twenty Million
Dollars Annually Added to
Cost Of Insurance
WHAT IS LEGITIMATE N ONE
STATE IS CRIME IN ANOTHER

Uniform Laws In the Several States
Will be Better Than Control BY the
Federal Government - Companics
and Policy Holders Must Unite.
Washington, Jan. 19.-From fifteen
to twenty million dollars a year is
the toll paid by the life insurance
policyholders of this country as a
result of the lack of uniformity in
state Insurance laws and practices,
according to L. G. Fouse. This is
| at least five per cent of the yearly
payments to policy holders and bene-
ilciaries, he figures. MI. Fouse who
Is president of the Fidelity Mutual
Life Insurance company of Philadel-
phia, made these figures known today
IN an address before the third annual
meeting of the association of life in
surance presidents, in session here.
He is member of the executive COM
mittee of the association.
"The magnitude of the interests ill
volved is stupendous,' said Mr.. Fouse.
Some twenty-five billion dollars of
life insurance in various forms are
in force in the United States with
accumulated assets of four billion
dollars. of which three and one-half
billions are held by the legal reserve
companies. Over one-third of the
population has a direct interest in
life insurance and more than one
half of the remaining two-thirds an
indirect interest. 1t is exceedingly
important that waste and unnecessary
taxation be stopped while extending
| ample security and protection to the
interests involved.
Some would seek to accomplish
the desired end through national laws
; and supervision others through the
i1armontzing Of state laws and prac-
ftices. For the present we are par
tfcularly interested in the latter. 1t
is a fact that cannot be controverted
that the lack of harmony in laws and
practices has been detriment to the
business. In recent years, however,
we have been drifting towards uni
formity and harmony. and there are
many who believe that the laws of
the various states can be made con-
sistent and homogeneous, and that 1t
would be better for all concerned that
the business be conducted under such
improved laws rather tnan under q
centralized administration. Hence,
IL the uniformity hoped for can be
accomplished there will be no need
of national laws and supervision"
Declaring that expense is the only
result to the life insurance policy
holder from the present great dissim-
ilarity of state supervisory laws, John
A. Hartigan, commissioner of insur-
ance of Minnesota, urged that steps
should be taken to obtain uniformity.
Certain uniform insurance laws
exist in q number of state and certain
requirements are the same, as, fol
instance, the form of annual report,
said Mr.. Hartigan, "but the multiple
ity OF other requirements is as great
almost, as is the number of states.
This lack of uniformity is exasper-
ating both to the departments and
the companies.
1.-The work of the department is
increased and the result of this work
diminished on account of the diverse
demands of different states. A knoWl-
edge of the laws of the home state
must be supplemented by thorough
familiarity with the laws of all other
states, as companies are governed
sometimes by the laws of the home
state and sometimes by those of the
licensing state. A company comply
ing strictly with the law OF one COM
monwealth, may find itself. on that
account, a lawbreaker in another.
AS different state laws prescribe diff
ferent standards for admitted assets,
the annual statements show a sur
prising divergence as published in
different places. Ii, for the annoy
ance caused by this diversity. there
were compensating. benefits to the
policy holders, it might be tolerated
but of these there are none. The
only result to the policy holder is
increased cost of supervision which
increase he must bear"
After relating various efforts that
have been made to obtain uniformity
since the convention of insurance
commissioners was organized in 1871
| anu dlIcI oI1SluE3 LubL 'SuV 3aSSsSSos
accomplishment in the line of uni
formity was the enactment within the
last few years in more than twenty
states of the laws known as the
Committee of Fifteen Bills" the
commissioner said.
IF the causes for existing lack of
uniformity have been properly and
correctly set forth, then the follow
ing remedies are apparent; action on
one subject at time; agreement be-
tween supervising officials AND COM
pany representatives on proposed
laws and amendments to existing
laws; central bureau in touch with
the legislatures; education of policy
holders and appeal for their support;
proper insight into the needs of the
business.
! The policy holder must be impress