The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-03-22
CHARGE GREEDY AIM
IN INSURANCE FIGHT.
Metropolitan and Prudential
Assert Agents Oppose
Change Of Law.
FAVOR BILL AT ALBANY

" ul'ILNTt1Uu IU pi'IdIVu ~ VI"
Metropolitan and Prudential insurance
compan MES explaining their stand in the
night to have tho Armstrong insurance
law OF 1907 amended by a bill now pend
ing at Albany asserts that the bill Is
opposed by agents OF tho participating
companies with one single purpose.
namely. 20 compel the Metropolitan and
Prudential to charge higher premiums
and 20 discontinue the use OF certain low
premium policies"
The opponents Of the proposed amend
ment are the Life Insurance Under
writer's Association Of New York and
SIX similar upstate orga nizations.
Their representatives appeared at a pub
lie hearing before a Joint legislative in
surance COMMITTEES last Tuesday ana q
nal hearing on the bill Ia scheduled for
to-day. Both sides will be we'll repre-
scented.
Tho memorandum Of the two COM
pan'es urging the amendment states that
agents and representatives OF the other
companies freely admit that they fear
the competition Of low premiums Of the
Metropolitan and Prudential allowed
unde- the proposed bill and that such
composition would lead the!r WIN COM
panies 10 issue cheap policies and cut
down commissions,
The Metropolitan and Prudential ~
sert hat the passage OF the bill will
lead to cheaper insurance. tho cost OF
insurance by participating companies be-
ing reasonably high" and based on n
mortality table absolutely inconsistent
! with the facts.
AS tho law now stands" sayr the
companies memorandum, no new mu-
tual llfe insurance Company can b
started in this state. The simple fact
is that the bill cures an injustice, pre-
vents AL Increase - premiums, puts all
mutual companies upon the sams plane
and invites the formation of new ones.
Any charge that the passage OF tho
bill Will result in raids upon thu agency
forces Of other companies n unreason-
able rate cutting is negatived by tho
fac, that both the Metropolitan and the
Prudential now write all the business
every year that the law permits and that
~ temptation whatever to attack other
companies or their inees or agency
stats exista"
The Metropolitan and Prudential CON
tend that the bill Is o designed to In
cresse expenses me tina expenses will
not be increased. It's sole aim. they
say, IL TO prevent the necessity OF rails
ing thcir premiums TO the public and
decreasing commissions D. agents. The
two companies hold that u would be a
gros. injustice for the legislature &c
p~enalize them for m~utua,lzing and turn.
ing over their assets to the policy.
holders by refusing To pass the bill.
The Metropolitan heretofore has Ia
suei nrn-participating policies AZ a cor
tain NNed premium. lower than thai
charged by other companies writing par
ticipatinE insurance. hut tho compan
recently WAS changed from a stock TO I
mutual company and now desires e
continue issuing participating ~insuranc,
at the rate charged In the past for non
participating insurance VIE Prudential
q In the process of naturalization
Both companies contend hat urles
The proposed amendment n the pr-sen
Insurance law is passed they Will la
20 increase their premiums to tho pr<kic
The two cmpanie- also made publi
yesterday 4 letter written by Deput'
state Insurance Superintendent Jane
i. lIoey in favor Of tho proposed amend
inrut, which was introduced with IN
approval Of the state Department. NJ
iio.y stated IN this letter, dated Marc
n. and addressed to a member Of tn
state senate, that Soma Of the agent
oppos-d tho bill from a selfish stand
point. fearing that th~lr companie
would have 10 reduce their rates.
"rhe insurance public in his state.
saws NJ. iIoey. "I. enti'l~d 20 The loves
INSURANCE rates consistent with SCUM
. Insurance principles and good bushes
practices, and II reputable strong com
pauies IKE the Metropolitan and Pru
T dental insurance companies want I
give their policy holders Insurance a
low cost Il seems 10 me tho duty OF tn
D leg stature o, make u possible by prope
amendment to the law"