Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1913-11-11

Side
| the State Life Fund premiums are
not taxed, the premiums charged
| bv the State Life Fund would be
higher in nearly every instance.
| But the State Life Fund issues
only participating policies and the
| hope is held out that the returns of
overpayments, i. e., savings in NOR
tality, excess interest, and savings
in expense, will give to the policy
holders in the State Life Fund a
lower net cost. Will it ?
Section 1989m enacted in 1911
and in effect July Z, 1911, provides !:
i. There is established life
fund to be administered by the
state without liability on the part
of the state, beyond the amount of
the fund for the purpose of grant
ing life insurance and annuities to
persons who, at the time of the
granting of such insurance and an
nuities, are within the state or resi-
dents thereof.
There is no liability on the part
of the state beyond the amount of
the fund, and the purpose CT grant
ing life insurance is not. confined to
residents of the state of Wisconsin,
hut the blessings of this privilege is
extended to persons who are within
the state.
The management of the State
Life Fund is delegated to the Com
missioner of Insurance as General
Manager, the State Treasurer as
Treasurer. The Commissioner of
Insurance and the State Board of
Health act as Medical Director and
pass upon applications. In the
State Fund, says the Insurance Re
port, 1912, p. B. 4, ''There are no
agents commissions to be paid but:
IS. 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 factory Inspector, to
the clerk and treasurer of every
county, town, city and village and
to every state bank, whose duty it
shall be to fill out and transmit APP
plications for insurance and annu-
tiles and such schedules and rates
shall also be. furnished to any other
person applying therefor"
None of the parties whose duty
it is made to act rs agents for the
State Life Fund-whether they
wish so to act or not-seem to be
required to have an agents license
or pay the required license fee of
one dollar as must the regu-
lar life companies, altho other pro-
visions of the statutes clearly
defines as an agent any person who
solicits or transmits other than for
himself an application for policy
of insurance, or collects any prem
ium for insurance or in any manner
aids or assists in doing either, if he
receives compensation for such ser
vice, and subsection 4 of Section
1876 of the statutes provides a fine
of not more than five hundred
dollars as a punishment of any per-
son so acting without a license.
The State Life Fund Law does pro-
vide compensation for the persons
so acting as it's agents 13 b) by per-
mitting the person transmitting the
application to retain twenty-five
cents for each application and fee
of one per cent. on the amount of
the premium.
The State Life Fund Law even
offers to the applicant for insurance
a rebate of Twenty-Five Cents for
the application and one per cent.
of the premium if he sends in his
application.
If regular company or one of its
agents we're to SO rebate, its license
to do business would be revoked.
The intent of the Law, how
ever, is, or it is contemplated, that
the people of Wisconsin themselves
will take the initiative and apply
for life insurance in the State
Fund. The person desiring
insurance shall fill out his
application and transmit it to
the commissioner of insurance, to
gether with the premium for three
months, or multiples thereof and
medical fee of two dollars.
The life insurance official who
every morning fights his way to his
office through mob of applicants
storming the Home Office for life
insurance, will readily appreciate
that the State Life Fund will re-
ouire no agents even if the appli-
cants are required to pay for their
own medical examination and for
ward the premium in advance.
In this connection consideration
NAV be given to the probability of
large mortality savings on the part
of the State Life Fund and conse
quent large return to the policy
holders in oyerpayments-i. e., NV
idends
Depending upon the initiative OF
the persons desiring insurance,
viii there be a large saving in NOR
tality or will there not be a selec-
tion against the Fund by persons
who do not feel sure of themselves
or feel that they must have insur-
Continued on pAge siN1