Bisbee daily review., 1915-04-04
.HERALOS OF LIBERTY To LEAVE ARIZONA
 INSURANCE FIELDS
Corporation Commission De cides That Organization Does Not Comply With Lo- cal Laws, So Authority Is Revoked.

VI
 Revoked.
 PHOENIX, April 3-On the ground that the Heralds Of Liberty had not complied with the insurance code of Arizona and that the operations of its representatives in this state were in violation of the rules of the society. the corporation commission yesterday revoked the authority of that organi- ration to do business in Arizona.
 From the evidence adduced at the hearing, the order states. it was clear ly revealed that the society's repres- entatives took applications for bene iit certificates and caused same to be issued to said applicants. when as a matter of fact, under the terms Of the certificates issued no death claims can be nhiIsained against the society until each holder has been duly elect ed and induced into the lodge. and accepted as a member in good stand. ing. The order further says
 Section S3 of the insurance code provides that the payment Of death benefits shall be confined to wife hus- band, relative by blood to the fourth degree. ascending or descending-iu other words, the beniGciary must have an insurable interest Under the pro- visions of this section alone. the plan of insurance adopted by the Heralds of Liberty cannot legally be permitted in this state One of the most vital requirements of practically all the olo and we'll established life insurance companies in the United States it that the beneiciaries in any policy of in. r[cG must have an inairable in tCrest In the insured. and this re- quircment is base upon Che calcula tions and knowledge of the best ex- perts and actuaries known in the his tory of life insurance.
 We maintain that 1t was shown at the hearing that the claim of the rep resentatiyes of the 5eralds of Lcberty that the average payments of mem. bers of only $899O would yield them on average return of$6220O in three years and nine months was contra dictory to reason and fully refuted by acturial calculations based upon the American Experience Table of Mortal ity and sustained by leading life in- surance experts through the country
 investigation has revealed the fact that the Heralds of Liberty have been denied admission into ryre states than into which they have been ad mitted and has further revealed the fact that majority of the states into which they have been admitted would have refused them admittauce had their insurance laws been adequatp in giving the insurance departments the power 10 regulate and control the operations of iraternal beneficiary so.I cieties of that charter
 Thus We have a prepouderauce of evidence that the plan ofinsurance offered by the Hcralds of Liberty isl held as unsound by a majority of the states and they have. been denied ad mission because uf<the character of thc plan of insurance offered and the financial weakness revealeS by such a plan. For the reason that. (a) The society has not complied with the in- surauce code of this state regulatine the admission and operation of such societies: (b) The plan of insurance offered with reference to the bench ciaries provided i'm the contract. is ev- pressly prohibited by the insurance code, regulating the form of in Nlrance to be used by Fraternal Benefit ,socie- ties: Co The plan of insurance is spe. culatiye and partakes of a species of chance inconsistent with financially sound and legitimate fife insurance. (d) The plan of taking the cetdcate- holders money and creating fund with which to pay living members who have no insurable interest in the inc sured. is unjust and against public pol icy; (c) The advertisements placed by the duly authorized representatives of the society are misleading and to- gether with the evidence herein prove that the fratemal feature of the soc ciety in highly dominated by the com mercial features,
 "It is the decision ofthis commis- sion, and it is therefore ordered That the authority heretofore issued Her aids of Liberty to do business in the state of Arizona be and the same is hereby revoked" The order is signed by all threc members of the commits sion The aplication of the Sterling Mutual Benefit Association, an organi- zation operating under a similar plan. and which was filed some weeks ago. was denied yesterday by Insurance CcHmissioner Thompson The inves- tigation of the Heralds of Leberty which carried on an active aampain in the state, was watched with great
 interest by representatives of the old- line companies and attracted a great