The Greeley tribune., 1911-04-27

Z called attention 10 tHS law
Greeley had had but one very de-
structiye fire in IS years, until the
burning OF the Orpheum theatre last
spring. He thought that the insur-
auce companies were making Gree
lev the goat" He denied that the
fire pressure was low. and he evil
IDENTIFY does not think highly Of any
mans ability to materially decrease
his rate undsr the Dean schedule.
state Insurance Commissioner
Clayton threw considerable light up
on the matter OF life insurance. and,
incidentally. took pretty good fall
out of those companies which have
been attempting to write insurance
policies and use block Of stock in
their own companies as a bait to
obtain risks, holding before the eyes
of the more or less greedy victim the
immense profits and surplus accum-
ulated by some of the more success
full companies after fifty or a hun
dred years of business.
Colorados insurance law provid-
ed that for every life risk written by
any company within the state. re-
serve fund must be provided which
placed at interest at 8 " per cent,
will at the end of the mans life e1-
pectancy, have accumulated a sum
sufficient to pay the face OF his pol
icy. 1t is the duty Of the state in
surance commissioner TO see that
this law is enforced. and that re-
serve and capital are kept intact.
All old line insurance is based up
on Just this one principle. Term in
surance, endowment, and annuities
are simply frills tackled to the orfgi-
nal garment. It is possible to make
a single payment. and thus provide
your life insurance. At the age of
35. a single payment Of $370.55
placed at interest at 31z per cent,
will have matured a $1,000 policy
at the end Of the holders life ex-
pectancy. II he dies before his time
and beats the game, the other man
will outlive it, and have accumulat-
ed more. than the $1,000. 30 it
evens up.
The above payment has to have
added to 1t. about IS per cent for
the expense of handling. investing.
Office and clerk hire, etc. This is
called loading. Insurance which
is paid for in twenty or more annual
payments instead OF a lump sum,
must be loaded heavier for ex-
penses, usually about SO per cent.
All dividend participating and SINH
lar policies, simply have the loading
increased to cover the dividends
paid to policy holder.
In the last twenty years have seen
the evolution of laws regulating life
insurance. There are NO such things
as absolute lapses any more in poll
cies which have been kept up for
three years or more. They have a
certain fixed value as paid up insur-
ance. 1t is now not lawful to pay
dividend If such have not been ac-
tually earned.
He spoke highly OF some OF Colo
RADIOS home companies, which are
succeeding, and in the course of
many years will be large, profitable
companies. He cited one of them
which. after eleven years was able to
declare its first dividend of per
cent. and now, after twenty years,
is making eight per cent.
| There is more insurance in fra
ternal, or assessment companies, in
this state than Of old line. II
bill now before the legislature be-
comes a law, the fraternal compan-
les will be put under the same regu-
lations as are now enforced against
old line companies, and will have to
put up practically the same sort of
reserve fund. keep 1t intact or quit
business. Mr.. Clayton told of his
experience with some of the "wob-
bly," fraternals, and of the number
of victims who visit hts office in an
effort to get something out of their
policies. He predicted that the
time will come when all insurance
will be put upon such basis as will
insure every contract of absolute
certainty of fulfillment. He called
attention to that part of the Colo
RADIO insurance law which forbids
any member Of the insurance COM
missioner's Office from holding any
stock or any interest or any office in
any insurance company, further
than regular life policy which must