OTHER QUESTIONS.

So much space has been taken already in discussion of the most important question of the hour, in Life insurance, that it may be unwise to enter upon a consideration of any other. Before passing, however, to the business of 1872, and the suggestions incident thereto, the Superintendent would simply submit one or two others.

What plan can be adopted, that will give the most perfect security to a company in its selection of medical examiners? It is safe to say, that no matter how careless or corrupt may be the agent soliciting risks, if the physician does his duty, the company cannot be badly deceived, except by the fraud of the insured. His fraud vitiates the policy, so that right upon the competency and honesty of this single, most important individual, other things being equal, success or failure turns. The desirability of having the best medical examiner possible will be universally conceded. But the question here presented is: What plan can be'adopted that will the most certainly secure such? If this inquiry be of no importance to old, it may be vital to new, companies.

It is also submitted, whether the present system of appointing attorneys out of State companies, upon whom process can be served in actions brought against them, could not be judiciously dispensed with, and something more simple substituted in its place. A law making the Superintendent ex officio the person to be appointed attorney by such companies, and making service upon him or his Deputy equivalent to service upon the attorney as at present appointed, would seem to present decided advantages over existing laws. Either the Superintendent or his Deputy is constantly at the Department, and service could easily and always be made. There could then arise no question over a company having withdrawn, its attorney removed or dead, or his authority canceled. The Superintendent could at once inform the company, and hand the papers to such agents or legal advisers as its officers

should suggest. It is believed that this course, while simplifying and facilitating the service of process in such cases, could be made but little more troublesome to the Department, less expensive, and less cumbersome to the companies, and when once generally understood, much more satisfactory than the present system. It would have the further merit, of giving to the Department some hints whether a company was engaged in the business of collecting premiums alone, or whether it was also paying its legitimate losses.

If the idea above suggested is wise, it should be made to apply to Fire, as well as to Life insurance companies of other States and countries.

This year, companies have been allowed to deduct from "items 12 and 13," in the Blank Statement, simply, the cost of collection. This was accepted, not because it was deemed the proper deduction, but for the reason that it had previously been accepted, and it was thought unfair, without notice, to give a new interpretation to this item. What reason can be given, why, if the Blank should remain the same, the deduction evidently contemplated by it, should not be made another year?

BUSINESS OF 1872.

The

Table No. II gives the usual classification of ASSETS. gross assets of Life insurance companies doing business in the State at the close of the year 1872, amounted to $335,168,542.70, of which, home companies possessed $166,277,986, other State companies, $168,890,556.70.

The LIABILITIES, as shown in table No. III, aggregate, excepting capital stock, $288,327,106.78, our own companies carrying $145,660,891.98, and others, $142,666,214.80. The total surplus as regards policyholders, is $46,841,435.92; of New York com panies, it is $20,617,094.02; of others, $26,224,341.90. While the policyholders thus appear to have a surplus in every com pany, the stockholders, in twenty-two, find themselves with a deficiency of $2,270,919.13, and in twenty-four, they have a surplus of $12,350,665.54.

The sources and amount of INCOME are shown in Table No. IV. The aggregate of income was $117,306.028.79, of which $105,069,402.92 was returned as cash, and $12,236,625.87 as premium notes and loans. The total excess of income over expenditures was $39,098,773.31. Three companies expended $68,088 beyond their income!

Table No. V gives the total cash and note EXPENDITURES as $78,207,255.48; of which *$25,672,479.16 were paid for losses and claims, *$13,921,910.00 for policies lapsed and surrendered, $528,007.59 in dividends to stockholders, *$20,077,997.56 in dividends to policyholders, $7,211,896.46 in commissions, $4,510,874.75 to officers and medical examiners, $1,279,389.89 for taxes, leaving $5,004,700.07 to be accounted for in other ways. The total cash expenditures were $68,166,280.51, while the premium note expenditures were $10,040,974.97.

Table No. VI shows the POLICY RECORD for the year. New York State companies issued 105,448 policies, insuring $264,228,318, while 78,659 policies terminated, insuring $206,476,938. Other State companies issued 95,918 policies, insuring $225,696,539, while 73,401 policies terminated, insuring $196,878,707, thus making an aggregate of 201,366 policies issued, insuring $489,924,857, and 152,060 policies terminated, insuring $403,355,645. The manner in which these policies terminated, and the number and amount in the case of each company, may also be seen by reference thereto.

Table No. VII shows the INCREASE or DECREASE of the business of each company, in these particulars, over that of the previous year, the aggregate of such increase or decrease, with the ratio of the number and amount of policies issued in 1872, to the number and amount issued in 1871. Forty-three companies show an increase of 53,539 policies, while sixteen present a decrease of 4,863. Thirty-nine companies, however, show an increase in the amount of outstanding policies of $109,015,083, while twenty return a decrease of $25,906,894, thus giving a net increase of 48,676 policies, and an addition of $83,108,189 to the amount insured during the year. These tables include not

*Cash and Note.

only the new, but the re-insured risks, which thus give to some companies an appearance of comparative thrift, which time may show to be unreal.

Table No. VIII gives the KIND of POLICIES issued by each company, the number and amount, the average amount of each policy, the average reserve on each policy and the average reserve on one dollar. By reference to it, it will be seen that at the close of last year, the companies then doing business in this State had out 804,444 policies, insuring $2,114,742,591. Of these, 561,145 insuring $1,557,753,762 were whole life, 178,934 insuring $404,258,870 were endowment, 9,061 insuring $17,150,662 were joint-life and survivorship, 5,535 insuring $17,489,763 were short term and irregular. The average amount of each policy is then shown to be $2,629, the average reserve on each $345, and the average reserve on each dollar something over thirteen cents.

Table No. IX shows the DISPOSITION made of INCOME by each company. Of course, such a a table for a single year would give but a very slight indication as to its management, its prosperity or its ultimate success. Exceptional causes may furnish very delusive percentages. Ratios for a single year are often deceptive. When, as in this table, large sums received for re-insurance enter into one year's income, the corresponding liabilities assumed therefor, may not present themselves in the expenditure side of the account till following years. The amount paid upon matured endowments, may be extraordinarily large one year and small the next. The age of a company, moreover, often enters in as an important factor. Other elements, also, create an exceptionally favorable comparative showing, which will often be delusive to a superficial observer. But, after all, ratios and percentages, following each other down through all the tables, and year after year, will give almost certain indications whether the tendency of any company is toward solvency or bankruptcy. So that while this table (and the same may be said of all) may be of slight value one year, as indicating the

comparative merits of any company's management, after a series of years, it may present unmistakable indications in that direction.

Table No. X shows the number and amount of CLAIMS by death or maturity, the ratios of the same to the number and amount of policies in force for the years 1871 and 1872. The aggregate in 1872 exceeded that of 1871 by 1,382 ín number and $3,386,888 in amount, ten companies only showing a less number, and but fifteen a less amount, of claims last year than the year before. The corresponding ratios in the case of each company, and in the aggregate, for both years, is also given in this table.

Table No. XI gives the RATIOS obtained by a comparison with each other in various ways of the net assets, re-insurance reserve, risks in force, premium notes and loans, deferred and uncollected premiums, and the amount of each, singly and in gross.

AUTHORIZED COMPANIES.

Table No. XII gives a complete list, alphabetically arranged, of the Life and Casualty insurance COMPANIES AUTHORIZED to transact business in this State, April 1, 1873, with their location, the names of their officers, and in case of companies from other States, the names and address of the attorneys upon whom process can be served.

During the year, no Life insurance company was organized in this State, while eight New York companies ceased doing business. But one, from other States, was authorized to transact business here, and four either withdrew or were excluded therefrom. The changes thus indicated are readily seen by reference to the following statement brought down to the date of this Report.

In order to make it more complete, it is made up from the time of the organization of the Department, so as to give the New York companies which have ceased to do business, and the companies of other States, which, once admitted, have either had their certificates revoked, or have been withdrawn.