The Anderson daily intelligencer. [volume] (Anderson, S.C.) 1914-1915, 1914-11-19
INSURANCE MEN ARE
SHOWING INTEREST
CITE ALABAMA DECISION FOR
AN EXAMPLE
QUESTION OF TAX
Another State Has Ruled That Of
ficials Have no Right to Tax
Paid-Up Policies.

Following the announcement made
Monday to tho effect that the State
insurance Commissioner will recon-
mend to the next General Assembly of
South Carolina that all paid-np life
insurance premiums be taxed in this
State. insurance writer's of Anderson
have bee nindulging in much discus
sion of the question. The general op-
inion seems to be that the policies
cannot be; taxed and the insurance
men are citing as an example the de-
cfsion OF the courts of Alabama, in
which this was the ruling. The fol-
lowing from the Life Number of In
surance Field, dealing with this sub
ject, will be read with interest by
insurance men of Anderson and poll
cy holders as we'll:
Besides tho immediate benefit to
the people Of Alabama Of the ruling of
the Alabama Tax Commission that
cash surrender values Of life policies
are not taxable, the decision carries
with 1t result of much Importance
to the life insurance business as a
whole.
inc attorney general uT Unio
Pennsylvania, Nebraska and Mime
ocse@ haNS hCtQ tltAl unucI+ IuG statutes
Of their respective states surrender
values are not. taxable, while there is
a similar decision by the Supreme
Court OF Indiana. Each OF these de-
cisions marks the result of an efforA
on the part. of a state, through inter-
probation OF existing statutes, to in
crease its income at the expense of
prudent policyholdeT5, and doubtless
attempts to levy such taxes on the.
part Of other states will occur from
time to time.
When Considered Credit.
Alfred Hurrel, attorney for the as
sociation of life insurance presidents,
in his brief filed with the Alabama
Tax Commission against the tax laid
stress upon the fact that the cash sur
render value In and Of itself becomes
credit only when the policyholder
surrenders his policy and elects. from
the options open to him, to receive the
cash in settlement. He said that such
taxation would curtail business and
cause lapse and cancellation. of pill
cies. He stated that the amount ;of
life insurance outstanding in a state
has direct relation to the burdens
of government therein. as the greater
the amount of such insuranc tehere is
called upon 10 render assistance To
destitute women and children.
5 Again Mr.. Hhrrell pointed out that
II should be understood that the pre-
Iniums a, noIicyholder navs fo n com.
many are moi legally akin to deaosjts
I'M n savinra hanst. he cannot receive
them or a portion OF them back at any
time he wills, without himself giving
money he gels hack. thev are in tho
stricsiy LEGAL aense merely the cons'
sideration he navs for I'm nrotectinn
riyen by the noIicv : i
HiffIenjtT In Asseas,no.
Even On a canceiiafion oS tSa not,cs.
the comnanv does mt necessa rily. ava
the money tn Stbe noiinyhoSdar AZ ss
to make him .bs owner of a credit as W
he NAV aTerct,e his riebt tn eiect ono
of the ,ofj,srs 10 q .nntinns =, !, q ne o 10
nal :, s,1. e1f sd ., yanes .
;'ii tSiAa' - ttsS :, sss S,sssnr ,-h;ch .,n,,l6
ariss % in n the ssssssn,ant ~ tha - ,ass, X,
NN-etNAl