cessful to a remarkable degree. Concerning the accident contract the language of the report was as follows: "So far as the accident contract can with safety be freed from annoying restrictions and conditions that are liable at times to misunderstanding, it should be done; but it should also be borne in mind that the primary consideration is the protection of the interests of the mass of the membership; that to the limit where this is done, simplification is progress; beyond this, it is dangerous experimenting, unjustifiable from the standpoint of business prudence. The care and judgment which have characterized the shaping of the changes which have already been made in the accident contracts are in themselves the best possible evidence that they have been in the interest of the entire membership of the companies, and that they mark real and not merely apparent progress in this branch of the business." The report occupied the emphatic position that "no system of surpervision can be devised that shall so far forestall the approach of danger as to be a protection to a membership. So far as the belief that this can be done is fostered, the people are taught to substitute for the real protection of their own business judgment, based on knowledge of facts, the fictitious protection of an over-rated governmental act, thereby lulling them to dangerous indifference. It is beyond question,' continued the report, "that our laws have done much to rid us of weak and unprincipled institutions, but we believe that the most of this benefit has been due to the letting in of light upon the methods and conditions of these concerns, rather than to the actual exercise of supervisory powers on the part of the State." The statistics of assessment business transacted in the United States in 1889, as presented by the report, were: Number of companies reporting, either fully or in part,. Number of members at close of 1889, Insurance in force at the end of 1889, Amount of assessments during 1889, Total income during 1889,. Claims paid during 1889, 481 501,941 2,505,975 $5,554,925,742 $49,577.502 $60,104,183 $42,141,075 $12,648,764 $25,911,866 $297,088,251 The report, which was prepared and presented by George D. Eldridge, chairman of the executive committee, was referred to the committee on president's address, with instructions to place in form the recommendations which it contained. The executive committee was ordered to discontinue work on the medical directory, which had been in progress for a number of years. The first day's proceedings were concluded with an address from President E. B. Harper, of the Mutual Reserve Fund Life, of New York, the subject being "The Past, the Present, and Future of Assessment Life Insurance." Most of the session, June 11, was devoted to the reports of vice-presidents and the presentation of papers, including George D. Eldridge's on the question : "What effect has the withdrawal of members upon the cost of insurance, and what minimum charge should companies make to protect their membership against the effect_of_such withdrawals ?" and "The mortuary cost of life insurance," by J. T. Patterson of Belfast, Ireland. The executive session unanimously adopted the appended resolutions: WHEREAS, the increasing frequency of official examinations by the insurance supervisors of some of the states of companies incorporated and supervised by the authority of other states, which examinations have at times been made almost immediately succeeding an examination by the authority of the state of incorporation, is calculated to bring into disrepute the system of governmental supervision of insurance companies, and to create the suspicion that the great powers intrusted to the insurance departments of the states are being used for purposes other than those for which they were originally delegated, if not even to the personal purposes of the supervisory officers; WHEREAS, Such examinations are, by the cost which they entail and the disturbance of the routine of business, which is unavoidable, a burden upon the companies and a cause of increased cost of membership; WHEREAS, there is evidence calculated to show that the securing of such examinations of assessment or natural-premium companies has at times been brought about at the instance of companies of a rival system for the purpose of causing annoyance, expense, interruption of business, and public discredit to companies operating on the assessment or natural-premium plan; and WHEREAS, any objection made by a company so placed under examination is sure to be interpreted to its disadvantage, and as an objection on its part to the system of governmental supervision itself, therefore, be it Resolved, That, while this convention, speaking for the representatives of the assessment or natural premium system, emphatically reaffirms its adherence to the principles of governmental supervision of insurance companies, it also respectfully asks that as a rule the insurance commissioners of the several states shall in honor supervise the companies each of his own state, and that the certificate of such examination and its results, granted by the commissioner of the state making the examination, shall be accepted by the commissioners of other states in which the companies desire the privilege of doing business; Resolved, That the influence of this convention will at all times be used to sustain the proper exercise of the legitimate powers of the several insurance departments. but at the same time it is propêr that it should be used in every way possible to prevent the arbitrary use of those powers, and their prostitution in a manner that is likely to bring discredit upon the departments, State supervision itself, and the companies operating on the assessment or natural-premium plan; Resolved, That, whenever it is made clear to the Executive Committee of this convention that the influence of any company has been exerted to procure an official examination of any company, a member of this body, in furtherance of an unjust attack upon such company, the said committee be authorized and instructed to use every legitimate means to defend and sustain the company so attacked, and if, in the exercise of this duty, reason is found for asking that an examination of the offending company be made, the said committee to use all proper efforts to secure an examination of such offending company. President Avery appointed Messrs. T. B. Campbell of Washington, District of Columbia, M. F. Ricker of Auburn, Maine, and Benjamin F. Dyer of Boston, as a committee on unwarranted examination of insurance companies. The question, "Can an assessment company safely transact an endowment business?" was discussed at length by Messrs. E. B. Harper of New York, Charles I. Westerfield of Chicago, George A. Litchfield of Boston, George D. Eldridge of Washington, Henry J. Reinmund of New York, and John I. Acker of Albany, New York. Mr. Westerfield held the position, in a paper presented on the subject, that an assessment company can not safely transact an endowment insurance. Mr. E. B. Harper, in discussing the propriety of issuing a five-year endowment policy said: "I believe that it is outside of the correct principles of assessment insurance, and that we should express ourselves upon this proposition so positively that no one will be mistaken regarding our views on this subject. We all know that an institution that issues a contract and fails to perform the conditions contained in the contract, thereby bringing disappointment to the members, and, if transacting business upon the assessment plan, will bring discredit upon the assessment system, whether it shall be a policy payable at death or payable at stipulated periods; and for that reason, I believe, we should stamp the endowment idea in assessment insurance as false, and that it should not be recognized in this convention. I am free to admit that an assessment company can, with equal security, issue an endowment policy, as can a level-premium company. There is nothing in a name, but if they do issue an endowment policy they should be ready and willing to comply with the law and put up a reserve, or what is only another name for a sum of money each and every year of the endowment period which, added together, will equal the endowment at the period when the endowment is to be paid.' Mr. Eldridge held that a confusion of terms had been introduced and that the disputants had "used endowment insurance on the assessment plan and endowment insurance issued by assessment companies as equivalent terms. They are entirely different. Endowment insurance means the agreement to pay at a specified time a certain sum of money. If that contract is issued by an assessment company, it does not necessarily mean that that company will depend upon irregular assessments levied upon its members at death to produce the sum. He held it is just as legitimate for an assessment company to collect money, and put it away for the purpose of paying it at a certain time, as for an old-line company to do so. It is simply a matter of business policy.' No definite action was taken by the convention upon the question at issue. Messrs. Henry J. Reinmund of New York, Daniel J. Avery of Chicago, and George D. Eldridge of Washington, were appointed a committee to attend the session of the National Insurance Convention at Cleveland, Ohio, in August, to present matters of interest relating to assessment insurance. The representatives on the committee appointed from the Accident Section were Messrs. William Bro. Smith of New York, and Benjamin F. Dyer of Boston. By virtue of the appointment to attend the National Insurance Convention, Messrs. Smith and Dyer became members of the committee on legislation. The executive committee was instructed to embody the question, "How does the loss to the members caused by the failure of natural-premium companies compare with that caused by the failure of level-premium companies?" in the next programme, and take steps to have a paper presented covering the subject matter and the statistics relating to it. The advisability of appointing a committee to draft a uniform insurance law was discussed by Messrs. Eldridge, Litchfield, and Harper, but definite action was postponed in view of the fact that the committee appointed to attend the National Insurance Convention was constituted a committee on legislation. The by-laws were amended, authorizing the election of a first and second vice-president at large, the first vice-president to act as the presiding officer of the Accident Section or division of the convention. The Medical Section held its annual meeting, June 11. The officers elected for the ensuing year were : President, A. H. Thompson, M.D., of Princeton, Illinois; Vice-President, E. D. Wing, M.D., of Galesburg, Illinois; Secretary, G. O. Taylor, M.D., of Chicago, Illinois. The Accident Section was presided over by David Murray of New York, T. S. Quincey of Chicago being elected secretary. Considerable time was spent in discussing the proposition that the life companies' members of the convention should be requested to furnish the accident companies with lists of their medical examiners whose trustworthiness had been proven. Messrs. T. N. McCauley of Chicago, N. H. Kingsbury of Westfield, Mass., and D. J. Van Auken of Geneva were appointed a committee to confer with the life members in regard to the proposition. Messrs. T. N. McCauley of Chicago, Benjamin F. Dyer of Boston, P. W. Barber, M.D., of New York, A. N. Lockwood of New York, and Frank K. Kohler of Pittsburgh were appointed a press committee of the Accident Section in charge of the publication of matters of interest relating to the accident companies. The questions whether accident insurance should cover intentional injuries inflicted by others than the insured, and whether the payment of benefits for partial disability should be encouraged, were discussed at length, resulting in the adoption of a resolution to the effect that the benefits then given by the mutual assessment associations contained all that was necessary to do, with safety and profit, to the business of accident insurance at the present time. The officers of the convention elected for the ensuing year were: Henry J. Reinmund of New York, president; W. H. K. Cutler of Chicago, first vice-president; Victory L. Sawyer of Waterbury, Connecticut, second vice-president; W. H. Smollinger of Galesburg, Illinois, secretary; John J. Acker, of Albany, New York, treasurer; Messrs. George D. Eldridge of Washington, District of Columbia, Daniel J. Avery of Chicago, E. B. Harper of New York, George A. Litchfield of Boston, B. F. Dyer of Boston, and David Murray of New York, executive committee. The list of vice-presidents recommended and elected was as follows: Missouri, Isidor Bush of St. Louis; Maine, George C. Wing of Auburn; Massachusetts, H. N. Kingsbury of Westfield; Canada, W. Pemberton Page of Toronto; Connecticut, Stephen Ball of Hartford; New York, Charles M. Turner of Syracuse; Pennsylvania, Frank K. Kohler of Pittsburgh; District of Columbia, T. B. Campbell of Washington; West Virginia, William C. Handlan of Wheeling; Michigan, W. H. Dunning of Detroit; Illinois, T. N. McCauley of Chicago; Wisconsin, J. W. Ostrander of Jefferson; Iowa, Edward A. Temple of Des Moines; Virginia, H. M. McIlhaney of Staunton; Tennessee, C. P. Storrs of Nashville; Indiana, John A. Wilkins of Indianapolis; Minnesota, D. W. Edwards of Minneapolis; Kansas, John E. Moon of Hiawatha; Maryland, William J. Wroth of Baltimore; Kentucky, Robert Skene, Jr., of Louisville. The salary of the secretary of the executive committee was fixed at $150 per month, and the office was ordered to be removed to Washington, District of Columbia. The city of Minneapolis was selected as the place for holding the annual convention in 1891. The delegates were given a reception and banquet at the conclusion of the business proceedings by the New York association, the committee in charge consisting of Henry J. Reinmund, chairman ; Henry C. Brownell, secretary; Wm. Bro. Smith, treasurer; A. N. Lockwood, Henry L. Coe, J. A. Kamping, H. E. Metzger, Henry Wilber, Charles L. Tompkins, Knight L. Clapp, George R. McChesney, and Joseph I. Barnum. President E. B. Harper acted as toast-master at the banquet, the toasts and gentlemen responding being: 1. The Trend of Mutual Insurance," Mr. George D. Eldridge. 2. "The City of New York," Dr. J. W. Bowden. 3. "The Beneficence of Insurance," Rev. Dr. R. S. McArthur. 4. "The Ladies," Mr. David Murray. 5. "The United States from the Chicago Point of View," Mr. Daniel J. Avery. 6. "The Underwriters of New England," Mr. George A. Litchfield. 7. "The Insurance Press," Mr. C. D. Lakey. 8. "Our Medical Directors," Dr. T. C. Campbell. 9. "What's Left?" Mr. John J. Acker. Mutual Life insurance company of New York: Annual election of trustees, June 2, resulted in selection of Messrs. Richard A. McCurdy, James C. Holden, Herman C. Von Post, Robert Olyphant, Robert Sewell, J. Hobart Herrick, Charles E. Miller, Walter R. Gillette, and James E. Granniss. June 4, Richard A. McCurdy reelected president and William J. Easton secretary. June 4, Dr. Walter R. Gillette resigned as medical examiner and was appointed general manager of the company. Dr. E. J. Marsh was appointed medical examiner and Dr. Granville M. White alternate. Henry R. Duncan was appointed corresponding secretary and Charles Bamburgh inspector of risks at the home office. Mutual Reserve Fund Life association: In November Vice-President N. W. Bloss resigned on account of impaired health and was succeeded by Henry J. Reinmund; E. F. Phelps of Galesburg, Illinois, was appointed comptroller and John W. Vrooman of Herkimer, New York, treasurer. N National Association of Life Underwriters: April 8, representatives from the Boston, New York, and Philadelphia Associations of Life Underwriters held a conference in Boston concerning the advisability of forming a National Association. This conference was instituted at the request of the executive committee of the Boston Association. The life underwriters present at the meeting were Messrs. David N. Holway, George N. Carpenter, W. H. Dyer, C. W. Holden, D. W. Kilburn, Franklin Barnard, and C. M. Ransom of Boston, Gilford Morse and Tilden Blodgett of New York, E. H. Plummer and F. A. Howard of Philadelphia. George N. Carpenter acted as chairman, and E. H. Plummer as secretary of the conference. After earnest and thorough consideration of the project, it was decided to hold a delegate convention in Boston, June 18, each life association in the country being entitled to five delegates. A committee was appointed, consisting of Messrs. Blodgett, Holway, Plummer, and Ransom, to confer with the life underwriters' associations in the United States, and request them to be represented by delegates at the meeting to be held in June, for the purpose of organizing a National Association. Fourteen associations responded to the request, electing delegates as desired to the meeting. On the morning of June 18, this meeting was called to order at the Parker House, by Tilden Blodgett of New York, E. H. Plummer acting as temporary secretary. The delegates in attendance were: Boston Life Underwriters' Association: David N. Holway, Provident Life and Trust; George N. Carpenter, Massachusetts Mutual Life; James T. Phelps, National Life of Vermont; Charles W. Holden, Washington Life; Charles A. Hopkins, Mutual Life. |