30
THE OMAHA SUNDAY BEE
of a deposit is to secure the payment
of policies. The end desired is
reached by requiring a deposit of
$100,000, which, if depleted through
any cause, must be made good before
the company can resume business,
Life insurance is but one phase of
banking. No bank is required to
keep on hand anything like 75 or 80
per cent of reserve. Why not insist
that banks deposit all their securities
with the auditor?
Another demand is that after one
has paid a certain number of pre
niiums he be given a paid-up policy
in a certain proportionate amount If
by chance he lapses. On the face of
it that looks fair. But suppose you
borrowed $5,000 on your 160-acre
farm, giving a mortgage therefor,
Then suppose you paid $1,000 of the
borrowed money and refused or
failed to pay the balance, would you
expect the man who loaned you the
money to take the 160 acres and then
deed you back thirty-two acres of It?
I cite these merely to show why
Nebraska has not one fire insurance
company, although she pays more
than $3,300,000 a year for fire in
surance protection, every dollar of
which goes across the Missouri river
to build business in other states; to
show why Nebraska sends eastward
across the river $3,400,000 a year
for life insurance, every dollar of
which goes to build up business else
Where.
Lofting Six Millions a Year
Nebraska is robbing herself of
more than $6,000,000 a year by her
neglect to foster home insurance,
Not only has she failed to foster the
growth of local Insurance companies,
but she has actually permitted the
business to be throttled by permit
ting would-be reformers, doubtless
honest In the main, to stand forth In
defense of the dear people by urging
the enactment of regulatory laws
that keep up a constant agitation and
prevent men of capital from invest
ing their money in the insurance bus
iness. This self-robbery may be
stopped and this vast amount of
money retained at home to be used
in the development of Nebraska bua
lness institutions. How? By adopt
ing the policy of standing by our
heme insurance companies instead of
constantly nagging them..
Helpful Legislation Keeded
No one knows better than the man
agers of Nebraska life insurance com'
panles we have no Nebraska fire
Insurance companies the need of
insurance legislation. We need ' a
complete change in our system of
supervision and regulation. The au
ditor or public accounts, drawing a
salary of $2,500 a year, is nominally
the head of the state's Insurance de
partment. Having more business
than time, the auditor appoints a
deputy, who ia really the insurance
commissioner. This commissioner,
appointed usually for political serv
ice, often because of ante-election
pledges made in return for "support"
at primary and election, receives a
salary of $2,000 a year. The com
bined salaries of auditor and com
missioner would scarcely tempt a
first-class insurance man. But the
auditor and his deputy, seldom ac
quainted with the first principles of
the insurance business, begin imme
diately planning "insurance reform."
1 Takes the People Into Its Confidence j
In the Opinion of the Management of
The Bankers Reserve
Life Company of Omaha
the thousands of policyholders of that prosperous company have
to know all there 1b to be known about its financial condition,
growth and strength. For this reason its records have been ex
amined during the fifteen years of its corporate existence no
iess than eighteen times, by expert state examiners.
The Latest Examination
was finished June 30, 1912, and was made in pursuance of re
quests by the insurance departments of a few western states in
which the company does business.
It Was Disinterested and Thorough
The examination was made by George Graham, jr., actuary
of the insurance department of the state of Illinois, who is con
ceded to be one of the ablest actuaries in the United States. He
made the examination for those states, in the interest of the
public, irrespective of the interest of the company.
Exhaustive Report Epitomized
The salient points of the exhaustive report are given. Here
is what Examiner Graham says of the affairs of The Bankers
Reserve Life Company: .
"I find the company In excellent financial condi
tion. Its reserve standards are adequate. Its surplus
funds are growing rapidly and are being carefully con
served under expert supervision."
"Death claims settled fairly and paid promptly.
"AH receipts are properly accounted for."
"Real estate mortgages and registered bonds
owned by the company are high grade securities which
more than meet the requirements of the investment
law of the state."
"Cash and bank balances have been verified by
actual count of the cash and by statements from the
banks."
"The company's records and accounts are kept with
more than usual accuracy and attention to detaiL"
"Its mortality experience has been favorable." .
"Its volume of business has steadily increased.
"It has been the custom of
the Nebraska department to
make a complete audit of the
company's record annually,
"Every step in the progress
of the company from its ori
ginal Incorporation until the
present time is set forth in all
detail in the official records
and minute books and ap
proved by the auditor of the
state, who is charged with the
supervision of insurance com
panies operating in Nebraska.
"A very complete checking
system of the renewal cashier's
and bookkeepers' departments,
one against another, is main
tained, which permits an ex
aminer to satisfy himself very
readily that all receipts are
properly accounted for.
"Death Claims were ex
amined over a period of years,
and we found that they are set
tled fairly and are paid
promply on receipt of the
necessary proofs.
"Mortgage Loans and Bonds
are high grade securities which
more than meet the require
ments of the investment law of
this state. We are informed by
the Harris Trust & Savings
Bank of Chicago, which valued
the bonds on December 31,
1911, that no material change
has taken place in the value
since that time.
"Cash and Bank Balances
have been verified by actual
count of the cash and by state
ments from the banks.
"All agents and employes are
bonded in appropriate amounts.
"Throughout the investiga
tion we have been afforded
every facility and all informa
tion and records called for have
been promptly produced.
"In conclusion I wish to re
port that I find the company in
excellent financial condition. Its
records and accounts are kept
with more than usual accuracy
and attention to detail; its se
curities are of good character;
its mortality experience has
been favorable; its volume of
business has steadily increased ;
its reserve standards are ade
quate and its surplus funds are
growing rapidly and are being
carefully conserved under ex
pert supervision.'
Confirmed by Nebraska Insurance Examiner
John M. Gilchrist, Nebraska examiner, concluded his exami
nation June 30, 1912. His report concludes as follows: "The
report of Mr. Graham confirms the position and findings made
by the Nebraska department in its individual previous examina
tions made from year to year. It was thorough to an exhaustive
degree. No stronger phraseology in commendation could be used
by an examiner in the examination of a life insurance company.
I coincide with Mr. Graham in his findings and opinion."
Insure With The Bankers Reserve Life Company of Omaha
Write for the new literature today.
B. H. R0BIS0N, President, or RAY C. WAGNER, Secretary
HOME OFFICE, OMAHA, NEB.
Its Policies Are Not Excelled in the World.
Result, turmoil, suspicion and the
throttling of insurance enterprise in
Nebraska. At the end of four years.
just as these two ibegin to give evi
dence of having acquired some
knowledge of the fundamentals of
the insurance business, out they go.
Then two new ones come in, and once
again begins the circling.
Keep Politics Out
And all the while Nebraskans are
sending out upward of $6,000,000 a
year for something that ought to be
bought of home concerns, keeping
the money in Nebraska to develop
lands, build homes, employ workers
and educate the children. Six mil
lions is a sizeable sum of money
well worth looking after.
About the first reform that should
be adopted is that of making a change
in the method of selecting the men
who officiate as state insurance com
missioner. Instead of being selected
by reason of "political pull" and
holding office by partisan sufferance,
the insurance commissioner should
be selected because of his qualifica
tions for the position, and retained
therein as long as he performs hs
duties faithfully and well. The next
reform is not founded on legislative
enactment, but is founded on enlight
ened selfishness. We ought to fos
ter and encourage the organization
end development of Nebraska insur
ance companies, not because it will
enable men of capital to further en
rich themselves, but because it will
mean dollars in the pockets of indi
vidual Nebraskans throughout the
length and breadth of the state. And
hew? By keeping Nebraska dollars
in Nebraska, where there is some
chance of seeing them again, where
they will enlarge the volume of bus
iness, where they will build homes,
Improve farms, found businesses, em
ploy labor do many things in and
for Nebraska that they now do for
states and communities a thousand
miles away.
Fosters Home Insurance
Since the beginning of 1899, up to
the beginning of 1912, Nebraska sent
abroad $59,636,810.67 for insurance.
During the same time she spent but
17,924,078.48 with home companies.
The amount sent abroad grows larger
each year; the amount spent with
home' companies grows smaller. This
condition should not longer continue.
Nebraskans ought to begin buying
their insurance at home, if not be
cause of a desire to foster home in
stitutions, then because of a desire
to foster self. Let us try for a while
the policy of helping to build up Ne
braska insurance concerns by foster
ing legislation, ceasing the policy of
continual nagging and hampering.
Let us turn a deaf ear to would-be
reformers, no matter how well inten
floned they may be, until they have
demonstrated that they know some
thing about the principles of the in
surance and banking business. Let
us thrust to the rear the designing
politician who would ride into office
by posing as the defender of the
"dear pee-pul," and all the while
casting suspicion upon honest men
who, having formed a corporation,
are trying honestly and earnestly to
build up a legitimate business, a bus
iness profitable alike to them and to
the entire commonwealth
WILL M. MAUPIN.