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Show STRIKES HOOT OF mm. evil Commissioners Approve Bill Intended In-tended to Vastly Benefit Holders of Policies. REQUIRES ACCOUNTING FOR ALL SURPLUS FUNDS Proposed Measure if Passed Will Secure Management Controlled Con-trolled by Economy ST. PAUL, Aug. 24. Millions will be held in reservo for tho policy-holders of life insurance companies and the cost of insuranco will be materially lowcrod if a bill approved by the insurance in-surance commissioners at their session today meets with the approval of tho various Legislatures next winter. The f bill, which requires an annual apportionment and accounting of surplus of lifo insuranco companies, it is maintained main-tained by many of tho commissioners, strikes at the root of all tho ovil of the lifo insuranco company, bv holding hold-ing thoir officers accountable for tho enormous surplus funds accumulated under tho deferred dividend contracts, undor which nearly all of tho large companies operate. The matter of apportionment of the surplus was brought before tho com-' mission in a report printod by Zono M. Host, insuranco commissioner of Wisconsin, Wis-consin, on "annual accounting and distribution of surplus of ife insurance companies. " Associated with him on tho commission commis-sion which has this subject under consideration con-sideration arc Honry R. Prcwitt, insuranco in-suranco commissioner of Kentucky; Thomas Drake, superintendent of insuranco, insur-anco, District of Columbia, and B. F. Carroll, Auditor State of Iowa. Somo animated discussion followed tho introduction of tho bill by Mr. Host, which was deemed too radical for most of tho commissioners present. Will Accomplish Much. After some substantial changes, however, how-ever, tho bill requiring an accounting and distribution of surplus waB adopted. adopt-ed. It is thought that this bill, if passed by all of tho States, will do more toward securing tho economical management of insuranco companies than nivything elso. Tho commissioners believe that tho competition which exists ex-ists between the companies will make them eager to show a larger credit of dividends to the policy-holders than their competitors. This will result, it is declared, in a substantial decrease in the expense of management and will also provent tho manngoment from using tho accumulated surplus for speculation spec-ulation or for private emoluments, such as the recent investigations by tho Armstrong commission revealed. The bill provides that "every lifo insurance company conducted on the mutual plan, or in which policj'-holdors are entitled to share in tho profitB or surplus, shall make an annual apportionment appor-tionment and accounting of divisible suryjlus to each policy-holder beginning on or before the second policy 3'ear. or on all participating policies horoafter issued, and each Buch policy-holder shall bo entitled to and be credited with or paid in a manner provided such a portion of tho entire divisible surplus as has been contributed thoroto by his policy." Under the terms of the bill theso dividends are to be carried as credits und shall, in tho event of the doath of the insured, bo pa3rable with the policy. Another important feature of .ho bill Is a clause provided for a contingency con-tingency reservo lund, on a sliding scalo of percentages, sueh as has recently re-cently been enacted by the New York Legislature. |