The herald and news. [volume] (Newberry S.C.) 1903-1937, 1911-12-22

contingency reserve fund from year to
year as changes occur in the actual
condition of it's real estate; provision
will be made for possible losses on
mortgage investments; a contingency
reserve will be created and maintained
upon basis sufficient to meet a fall
in the market values of bonds, anticl-
'pating a much more severe fall than
any which the company has exper-
fenced in the past; and provision will
also be made for the possible loss OF
bank deposits.
The company has fully outlined the
manner in which it has endeavored to
ascertain the amount of surplus which
will be amply sufficient to Offset any
adverse fluctuations in the mortality
or in the value Of securities. In this
connection the bulletin further states:
"The present surplus is in excess of
what seems necessary, and it IS pos
sible to increase the values of, those
policies which are largely responsible
as q; class, for the excess. Moreover,
tthe present yearly earnings being in
excess Of the requirements Of the
present dividend scale, it has been. de-
cfded to make a. substantial increase
IN the annual dividends to policyhold-
ers." =.
iPolicy Reserves on Issues Prior to
T. 1900 Changed From I per cent.
to 8 1.s Per Cent. Basis, :
Beginning with 1922 policies issued
on the 4 per cent. reserve basis (which
includes all issues to and including
| 1S9s) will be changed to the 10. per
cent. basis. This will add about two
Fand one-half million dollars to the re-
serves under these policies, CORE
npondingly increasing the surrender
values Hereunder, irrespective Of the
contract provision of these old poll
cies. This action will also increase
the dividends under the old policies
The bulletin states that the 4 per cent.
reserve on December 81, 1910, amount
ed to s67,155,874; and that it is not
likely that such business will dlsap-
pear altogether for so years or more.
The company states that it has been
ascertained that the amount of present
surplus required to make the change
has been contributed by the policies
affected.
On all policies issued since 1899 the
reserves have been computed accord
ing to the American 3 per cent. table.
The reserves under all non-participat-
ing policies for December 81, 1910,
we're also computed according to the
American 8 per cent. table.
The bulletin states that the cash
surrender values for all policies issued
prior to 1900 which shall lapse or be
surrendered after December 81, 1911,
will be based upon the American 3 1-2
per cent. table, the surrender charge
being the same as that provided for in
the policies now being issued. Paid
I'D or extended insurance values will
be such as the net single premiums
on the above basis according to the
attained age of the insured will pur-
chase. The present provisions in the
old policies, applicable to the amount
payable by the company in case OF
death under extended insurance, will
continue to be applicable thereto, un-
less new non-forfeiture provisions are
substituted in place of those now con-
tanned in these policies. Such provis-
ions will be similar to those contained
in policies now being issued by the
company with the exception Ihal sur
render values will be based upon the
American 3 1-2 per cent. reserve. Such
substitution can be made when a prop
er release of the present non-forfei-
ture provisions can be obtained from
all parties in interest. The company
can not be too highly commended for
it's consistently honorable and equi-
table treatment Of its old policy-hold-
ers, who are given the benefit of all
advantages enjoyed by those members
holding more modern contracts.
Dividends of 1912.
The ccmpany's present dividend
scale, with certain notifications, which