The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1912-07-25
NOT FOR RATE CUTTING PLAN
Premiums to be About the Same as
Charged by Other Companies but
Variety of Policies Will be offered
State to Back All Policies.

consin would be able in few weeks
to begin granting life insurance and
annuities to it's residents and persons
with the state The commissioner is
preparing to leave for Spokane, Wash,
to attend the annual convention of
state insurance commissioners, and on
his return to Madison early in August
will definitely announce when the new
Estate insurance system will be put into
effect. The new law provides that the
system be put into operation by June
Of next year. However, the prepare
tions for it are practically complete
and it will be launched probably on
Sept. l.
"The law ;" said Commissioner
Ekern, "provides for life insurance
and annuities on a basis that is alb
solutely safe. Tt uses the same as
sumptions for death claims and for
interest earnings as the safest Ameri-
can old line insurance companies
The rates or premiums, the commits
sioner said, would probably not be
much lower than those of private in
surance companies, but the security
would doubtless be considered better.
The liability of the state, however, is
not to be beyond the amount of money
contained in the insurance fund. This
fund.- of course, will be derived from
premiums, interest, earnings and SINH
lar sources.
At the outset four different kinds
Of policies will be issued. They will
be whole or ordinary life, twenty
payment endowment, ten payment en-
dowment, and term to age of 65 years.
Later a system of annuities will be
offered. The annuities will begin
when the benefciaries reach the age
of IS years. No annuity can exceed
$500 a year.
The law provides that policies
shall be issued to persons between the
ages of 20 and so years. Life insur-
ance is to be granted in sums of $500
or multiples thereof, but no person
will be permitted to carry more than
$4,000.
The premiums for life insurance are
to be based on the American expert
enee table of mortality, with addi-
tons for extra hazards, interest, at 8
per cent and additions for expenses
and contingencies amounting to So a
year per $1,000 of insurance and one
sixth of the value of the insurance
distributed equally through the pre-
MUM payments.
Many inquiries regarding the cost
of the insurance and time when the
system will~>be put in operation have
been received by the insurance COM
missioner and placed on file, No ap-
|pieations will be accepted until the
system is put in force. Commissioner
Ekern believes that the number of
persons who will take out state insur-
ance will run into the thousands A
circular containing full information on
the system will be mailed to inquirers
soon after Aug. /.
Applications can be transmitted to
Commissioner Ekern or through clerks
and treasurers in town, villages, cities
and counties of the state, state factory
inspectors or state banks. These per-
lsons are to receive % cents for each
application. They also are authorized
to collect premiums and to retain 1
per cent thereof for their services.
Each applicant must be examined
by a physician under the direction of
the state board of health. The appli-
cation must be accompanied by pre-.
Imium for at least three months and nv
a medical examination fee of So. The
state insurance commissioner and the
state board of health are to pass on
Iall applications for insurance and their
decisions are to be final If the appi-
cation is rejected the deposit is return
ed less the medical examination fee
and fees paid~fo making out the an
!piication and remitting the premiums.
The life fund will operate with a
reserve on the same plan as the pres
ent old line life insurance companies
Loans may be made on policy to an
amount which together with interest
at 6 per cent per annum, shall not ex-
coed the reserve. On the nonpayment
of a premium the sum is to be CHARGED
as a loan against the policy as long as
the reserve is sufficient. The whole or
Iany part of loan may be paid by the
Insured or other interested persons at
any time. The policy may be surren-
dered for cash on any anniversary
after six months notice in WRITING.
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