Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1913-11-11
DIR. FRICKE'S REPLY.
lcontinnea from first pagel

dnCe What protection or safe
guard is there against such an
adverse selection and misrepresen-
tation of actual physical condition
Turned down by the regular life
company, with other companies
safeguarded by their exchange and
inspection bureaus, the rejected
applicant may apply to some fra
ternal order and withhold knowledge
OF his former rejection. If turned
down by the fraternal order he can
apply to the State Life Fund and
take another chance, where with
an examination fee of two dollars
with the chances of the examina-
ton made in perfunctory manner
the chance of putting one over"
is in the applicants favor, especially
if there is not the helpful assistance
of the exchange and inspection
bureau. My own experience has
been-and | have had quite some
along this line-that have never
succeeded in securing policy for
an applicant who applied himself
and was anxious to secure life insur-
ance. Only a short time ago man
whom | had known number of
years and never approached for
insurance came into my Office and
told me he wanted $l0,0 900 of life
insurance. | told him that | would
take his application and have him
examined, but that / had d record
Of ,,;oa+aaY, ci,,,;la ~ocae a,,J @L.l 4
had never yet secured the approval
of the medical examiner and direc-
tor on such an application. ] filled
out the application, the man was
examined and declined. Instead of
agreeing with the promoters of the
State Life Fund that they will
experience a very favorable NOR
tality, my own opinion is that it
will prove an interesting expert
ment that will confirm the opinion
that the selection will be against
the fund and the mortality exper-
fence high.
The secretary of state, attorney
general, state treasurer and COM
missioner of insurance will act as
the Investment Committee of The
funds, limited to such securities as
authorized by the insurance law.
/ am inclined to believe that with
the impossibility of divesting en-
tirely any commission or political
Office from ali and every kind of
political influence, public utility
bonds and even mortgages are not
the high class investment they are
when passed upon and made by the
directors of private corporations.
But whether this is true or not the
men who occupy these prominent
public offices and whose many duties
so fully occupy their time, will
hardly be able to give to the invest
ments of the State Life Fund the
time and attention that would
secure more than an ordinary safe
rate of nterest-rather will the
desire for safety and their respons-
Utility result in investments giving
a lower average rate of interest
than is realized by the regular
company.
We have then as the only other
factor for savings and large returns
to the policy holder the saving from
the expense loading. On page "B
4" Wis. Life Report, 1912, in en-
larging upon the advantages of the
Life Fund, it is stated
There are no overhead charges
for officials and management, only
clerical help being paid from the
Life Fund"
Who pays for the printing, post
age and the many and necessary
expenses incident to the conduct of
the business of life insurance =?
The tax payer? Given free rent,
free executive service, freedom from
all taxes and fees and only clerical
help to be paid out of the expense
provision of the premium, no doubt
the regular companies could make
larger returns to their policyholders.
But here is another considerations:
The insurance commissioner who is
the manager of the State Life
Fund and who is given authority
(1S) to make all rules and regula-
tions for the granting of life insur-
ance and annuities, as shall be
necessary to carry out the provi-
sions of the act, is also the super
visor of all the life insurance com
panies transacting business in the
state. He is in competition with
these companies for business, the
state has been flooded with lftera-
ture extoling the merit Of the
Fund, the State Report-printed at
the expense of all the tax payers
enlarges upon the blessings to come
(B ~:
1t keeps the money at home
where it is invested.
Isn't that fine argument to
saddle upon the domestic companies
of Wisconsin, authorized and at
tempting to do business in other
states
1t is done in daylight with all
the facts before the insured
1t is the purpose Of the Wisconsin
Insurance Department to infer that
the workingtools of the manage
ments of the regular life insurance
companies authorized, licensed and
supervised by the Department are
the dark lantern and the Jimmy ?
6B4. 'The element of profit is
done away with.
Is it not true. that if the largest
of the Wisconsin domestic compan-
les had been given the same treat
ment by the state during the last
ten years as is now extended to this
experimental State Life Fund-no
taxes, no rent, executive officers
salaries paid by the state, postage,
printing and all other overhead
charges paid out of the tax contri-
buttons of the people of this state;
state, county, city, town and village
officers and state bank officials com
PEELED by law to act as agents
for the company and ''only clerical
help paid" by the company, there
would have been from Fifteen to
Twenty Millions and over more of