The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-07-20
STATE LIFE INSURANCE.

An important step in the matter OF
life insurance has just been taken by
Wisconsin in the passage of law
creating State life insurance. \ "life|
fund is established, from which llfe
insurance will be paid to policy holders,
but without liability on the part of the
State beyond the amount of the fund.
Life insurance may be taken out and
annuites purchased under this act by
residents Of the State. The Commits
sioncr Of Insurance is to administer the
law, the State Treasurer to be eX'
oflicio treasurer, the Secretary of State
is to audit claims, and the losses
and other payments to be made upon
the order of the State Treasurer, At
torney General. and Commissioners Of
Insurance, acting as a board
I The Commissioner Of Insurance is to
furnish copies Of forms Of policies to
every State factory inspector, to the
clerk and treasurer of every county,
town, city, and village, and TO every
State bank, whose duty it shall be to
fill out and transmit applications for
insurance and annuity, and such
schedules and rates shall also be
furnished TO any other person applying
therefor. Policies of life insurance may
be issued to persons between the ages
of twenty and fifty years, in amounts
Of $500 or multiples thereof, bat not
more than, $1,000 upon any one risk
until the number of insurants shall ex-
coed thousand, nor in excess Of $4,000
until the number of insurants shall ex-
ceed two thousand, and so on, but not
at any time in excess of $4,000
The usual medical examinations and
fees are to be exacted from all the in
sured. The premiums for life insurance
in the life fund shall be based upon the
American experience table of mortality,
with additions for extra hazards, and
with interest at three per cent per an
mum, to which will be added for
expense and contingencies 50 per year
per $1,000 of insurance, and the
amount distributed equally through
each of the possible premium payments,
the present value of which shall be
equal to one-sixth of the present value
of the costs Of insurance on the basis
aforesaid
Annnities may be granted TO persons
between the ages of twenty and fifty
years, to begin at the age of sixty
years or more, in sums of 500 or
multiples thereof, not exceeding $500
upon the same risk. The premiums for
annuities shall be based upon the
British Office annuity tables, 1893, with
interest at three per cent per annum,
with additions for expenses and con-
tingencies distributed equally through
each of the premium payments, the
present value of which shall be one
sixth of the net single premium for
such annuity.
The forms to be provided will SET
forth in detail and with exactness the
amounts carried in every policy; the
precise premium charge, the fees, and
all Of the mutual obligations as be-
tween the State and the insured.
This is, we believe, the first attempt
by any State to go into the life in.
surance business, The step is certainly
cautions one, closely limited, and ii
conservatively administered, there
would seem to be no reason why it
should not be success; and with sue.
cess and the growth of the business
doubtless limitations as to amounts
will be considerably extended. The
particular thing expected of this Law
| is marked reduction in the cost OF
life insurance, and the safety of the
measures enacted would appear to be
complete. The limitation on the amount
of insurance, even at the maximum mum
Der insured, being $4,000, would appear
to be a popular move rather than
one for fancy insurance, and as such il
ought to be popular in the State where
the experiment is introduced