The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-12-19

city. The city, n the commercial,
club, will boost for the Pioneer Life
wherever possible, n the speaker ex.
tended to all the men a hearty invita-.
ton to make the club rooms theil
headquarters when in the city.
r. M. Pollock complimented the Off
GERS OF the company on the success
of h business, and spoke highly OF
the progress which has been made in
the few Years Of the company's ex-
~istence. He assured them Of the SUP
port OF the laynen Of Fargo in secur-
ing the achievement Of their ambition
to become one OF the big and promi-
nent companies Of the nation.
TayIor's Paper Read.
State Insurance Commissioner w,
e. Taylor was unable to be present.
but prepared an address which was
delivered by his deputy, w. D. Austin.
The address follows:
How Far May the Fatherhood of
State Manage the Individual Effort
Without H~amperinE Incentive? My
subject has been tricked out in the
ornate verbiage of the genial superin-
tendent of agencies; but, reduced to
Common terms, I understood it to
mean, How much supervision at the
hands Of an officious insurance com
missioner nus an insurance company
put up with and pretend to like il?
ne makes the proposition practical,
n L may add that it is one which is
oeing considered throughout the length
n breadth of the country, and con-
corning winch there is a wide diversity
OF opinion. Many company executives
feel that supervision Of their business
Is SIMPLY an im~pertinence. Some insur-
ance commissioners feel that without
their guiding hands and watchful eyes
the entire insurance fabric would go
to perdition. So far, the state official.
having the government and the laws
back of him, seems to have the better
Of the argument.
For myself l may say at once that
l believe there should be the very
least amount of supervision compati-
Die with sound public policy and the
proper administration Of the functions
or insurance. Indeed, I do not believe
there is an inherent need of any super-
vision, but that there Is a present
practical necessity for 1t. Today the
business Of insurance needs to be
supervised for the same reason that
and railroads and other public
and public enterprises need to
be supervised. And speaking Of banks
reminds me that our Lawmakers, in
their unquestioned wisdom. expressly
that these fiduciary institutions should
be officially examined at least twice
each year, while my department is re-
quired to examine insurance COM
pan1es only once in two years. So YOU
see that the presumption Of innocence
and integrity is in favor of the insur-
ance company as against the bank in
the ratio of four to one.
But this question Of supervision
cannot be directed with equal force
against all branches Of the insurance
business, because these branches are
in various stages Of evolution and re-
generation. Life insurance has made
greater advances toward the ideal thar
any other form of insurance, and re-
quires less supervision than any other.
Not long ago Mr.. Emmett, superintend-
ent or insurance Of the state Of New
York, addressing a body Of life insur-
ance men, said he would be hard
pressed If called upon to suggest any
legislation for the betterment Of life
insurance Or for the greater protec-
zion and advantage Of policy holders.
Less than ten years ago such q state
ment as that would have been absurd.
but in the great upheaval Of 1905 life
insurance was tried as by fire, and
came out nearly 100 per cent pure.
AT the last annual meeting of his
company I spoke of my increasing in
terest In the subject of life insurance.
Analysing that sentiment 7 find that
1t is based, first, upon the benevolent
character of the business. It has be-
come the habit of a good many agents
to speak of their avocation as that of
selling life insurance. While it is
literally true that even so good a thing
rs lite insurance must be sold-and
that by dint Of hard work and much
perSuasion-yet I dislike the phrase.
1t seems to me that it is almost as ir-
reyerent as it would be to say that a
m n STOW re 4I- To-~11 =.
calling at SO much per annum. 7 pre-
fer to think that life insurance agents
are engaged in an effort to induce men
TO perform a sacred and obvious duty
that Of making suitable provision
Tor the care and comfort Of those de-
pendent upon them.
Second, upon the fact that life in
surance a~pproximates to an exact
science. 1t is not an exact science,
ana never will be. III for all practical
purposes 1t amount to the am thing.
L nave been surprised to learn what a |
simple thing, in it's fundamentals, life
insurance Is. For example, let us sup
pose that the city of Fargo, for the
purpose Of municipal improvements of
some sort, issues bonds in the sum of
$4,000 These bonds bear interest Of
4 per cent, and mature in twenty |
years. Interest is a fixed charge, but
In addition to that a sinking fund is |
C0tCN bl9 pun pOSS/OI
ing h obligation at maturity. How
much money would need to be set |
aside each year, which, improved with
compound interest at 4 per cent, say, |
would exactly realize $50, 1000 in twenty |
years.. 7 can't give you the answer, |
but my friend Dern, here, could make
the calculation very readily; because
problems of that sort, though in end
less form, make UP the principal work
Of an actuary. But that, In substance,
Is life insurance, though in one case
we have what is called a sinking fund,
and in h other we have what is call
ed the legal reserve. OF course it Is
unnecessary to add that life insurance
premiums are based, primarily, upon
tables Of mortality and that they are
known to be ample to assure %soIvency.
THE laws of the state ofsNorth Da-
kota limit n define the kind of se-
curities In which a domestic life In
surance company may invest its capt.
tai and surplus funds--bonds or mort
cages on real estate, bonds of the
state, or bonds or treasury notes OF.
the United States, and also in the
bonds of any county on incorporated
city or school district In this state.
Life insurance companies r not per-