The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1911-07-13
Wisconsin to Take Lead in
Life Insurance Business
Among States of Union
TO GIVE INSURANCE At COST
Elaborate System has Been Worked
Out by the Legislature and Develop
ment of it Will be Watched With
Great Interest.

The state Of Wisconsin has the dis
tinction of being the first state in the
union to engage in the business of
life insurance and old age annuities.
The legislature has passed and the gov
ernor signed bill providing for the
administration by the state of a
life fund for granting life insurance
and paying old age annuities.' The
act will go into effect as soon as it is
officially published which will be in a
day or two. 1t is chapter SIT Of the
laws of 1911.
The purpose of the bill is to provide
life insurance and old age annuities at
a minimum cost. The plan to be fol-
lowed is similar to that which has been
in operation in Germany for some
years. Life insurance policies will be
issued and annuties granted to persons
between the ages of 20 and so years.
Life insurance policies are to be is
sued in amounts of $500 or multiples
thereof, but no person will be granted
more than $1,000 of insurance until the
number >of insured persons exceeds
1000, or more then $4,000 until the
number of insured persons exceeds
5000 or not more than $4,000 at any
time. The annuities are to begin at
the age of 60 years or more and are
not to exceed $500 annually to any
beneficiary.
Two Years to Prepare.
The act provides that ''the pre-
miums for life insurance in the life
fund shall be based upon the American
experience table of mortality with ad-
ditions for extra hazards, and with in
terest at 8 per cent per annum, to
which shall be added for expenses and
contingencies ~ per year per 81, 900 of
insurance, and an 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 -
The act further provides that "the
premiums for annuities shall be based
upon the British offices annuity tables,
1898, with interest at per cent per
annum, with additions for expenses
and contingencies, distributed equally
through each of the premium payments,
the precent value of which shall be
one-sixth of the net single premium for
such annuity.
Upon the filing of such forms, the
commissioner of insurance shall furnish
schedules of rates and copies of the
forms of policies to every state fac
tory inspector, to the clerk and treas
urer of every county, town, city and
village and to every state bank whose
duty it shall be to Eli out and trans
NIT applications for insurance and an
nuities, and such schedules and rates
shall also be furnished to any other
person applying therefor.
"The application shall be transmit
ted to the commissioner of insurance.
together with the premium for three
months, or multiples thereof and
medical examination fee of So in case
OF life insurance. The commissioners
of insurance and the state board of
health shall pass upon all applications
for insurance, and no life insurance
shall be granted without a personal
medical examination to be made at
the direction of the state board of
health, for which the local examiner
shall receive the medical examination
fee. If the application be rejected. the
deposit shall be returned, exceptino
the fees mentioned in subsection IA
Gee of 25 cents paid for transmittino
application for insurance or annuity
No examination shall be REQUIRED on
application for annuities If the an
pllcation be accepted, the premium shall
be paid into the life fund and a policy
shall issue, to be signed by the COM
missioner of insurance and the state
treasurer reciting that the same shall
be payable out of the life fund with
out further liability on the part -
the state.
Officials Receive Premiums.
s'The commissioner of insurance shall
provide the insured with blanks to he
used in the payment of premiums, and
such premiums may be paid to the
treasurer of any city, village, town OF
county, or to any state depository, who
shall receipt for and remit the same
to the commissioner of insurance. The
bond of every such treasurer and state
depository shall include liability for
ali premiums and other money received
for the life fund.
"a surplus shall be set aside from
the net. profits on each policy which
shall be made up on the following basis:
Fifty per cent during the first policy
year, and therefor 5 per cent less for
zach sleceodiup uolicy yaar mill ~