All vouchers for disbursements made during 1919 were examined and while a few differences were noted, these were all adjusted. No serious differences or errors were found.

Assets:

Mortgage Loans. One or two loans were noted where the principal bore interest at the rate of 5 per cent, but in advancing the money to the mortgagor or assignee, an adjustment was made placing such loans on a 6 per cent basis.

Policy Loans. There are comparatively few loans on the security of the company's policies. One or two errors were noted in this account by an examination of the loan agreements and other records and papers on file.

One case was where a loan was carried as in force where the policy had become lapsed on account of non-payment of the premium.

The ledger account of policy loans showed the total loans to be $3,778.77, but this amount was reduced by the examiners to $3,008.30 by reason of the case above cited.

Bonds. Bonds owned by the company and in their possession were counted and the security book accounts verified. A certificate for the securities on deposit with the Superintendent of Insurance was examined.

Cash on deposit with the bank was verified by a certificate from from the depository and reconciled with the company's account. Accrued interest was computed on mortgage loans, bonds and policy loans as of November 30, 1919.

Liabilities:

Net reserve. The company's valuation sheets showing all policies in force were checked in detail with applications and

premium cards. A few errors were noted and the corrections made.

Reserve for death losses incurred but unreported. No provision was made by the company under this heading either in its annual report for the year ending December 31, 1918, or any of its quarterly reports.

In making up this statement it was thought best to make a provision for such a case, and $1,000 was set up accordingly.

Cost of collection on uncollected and deferred premiums in excess of the loading thereon. In computing the amount of this item, only new business was considered. The loading on the uncollected and deferred premiums fails to provide for the commissions payable on such premiums by $2,478.71, and this amount has been set up in the statement prepared by the examiners.

Capital stock. This account shows an increase of $9,850 due to subscriptions received for the increased capital stock from stockholders entitled thereto at par.

Surplus. There has been a steady dwindling of the surplus of the company since it started doing business until the date of this statement when it has fallen below $10,000. With the sale of approximately 800 shares of the new stock at $200, it would seem that the surplus would be sufficiently increased to provide for the increased business which the company expects to place on its books from increased activities in states where it is already admitted to do business and states where it is the intention to apply for admission.

The company has considerable business in force in the states of New York and Pennsylvania, and comparatively small business in Ohio where the company has recently been admitted.

Plans of the company show that it is the intention to do business in all of the states where there are grange organizations. From audited statements of the company, as printed in the Green Books, the cost of writing the paid-for business in the several years, including agents' commissions, medical fees and the cost of agency supervision, was as follows:

1915 1916 .

$36 50 per $1,000 of new business 26 07 per $1,000 of new business

1917 .

1918.

...

1919 to December 1st.

18 46 per $1,000 of new business 19 73 per $1,000 of new business. 16 35 per $1,000 of new business

In checking the figures reported by the company in its schedule "Q," it was noted that the amount expended for agency supervision was not charged against the cost of securing new business. The following is a statement showing the insurance paid for during the years as shown above:

In conclusion it would appear that the company has started a rapid increase in the placing of new business on its books. With the placing of the new capital stock and the replenishment of the surplus, it would seem that provision had been made for the proper handling of a large amount of new business.

The company is fortunate in having the official approval and backing of the State granges of New York, Pennsylvania and Ohio, and now that contracts have been entered into between the company and these State organizations, it is expected that the company will secure a large volume of new business in 1920.

The company's home office organization is now well balanced, and it is believed that the business is efficiently and economically handled.

All new investments are made in mortgage loans on improved farm hands at 6 per cent interest. These loans are made only after careful appraisals have been made by experienced farm men. Every effort is made to safeguard the company's interests.

THE HOME LIFE INSURANCE COMPANY

NEW YORK CITY

Examined to ascertain condition December 31, 1918.
Report dated July 12, 1919.
Examiner: C. T. Sanders.

HISTORY

The Home Life Insurance Company was incorporated as a stock corporation April 30, 1860, under the Laws of 1853, chapter 463 of the State of New York, and commenced business May 1, 1860, with a capital stock of $125,000 divided into 1,250 shares of a par value of $100 each.

MUTUALIZATION

On April 17, 1916, the board of directors adopted a plan in accordance with section 95 of the New York Insurance Law for mutualization of the company.

The plan provided for the acquisition of the capital stock of the company at the price of $450 per share and the accrued dividend.

At a special meeting held on May 2, 1916, the plan was approved by a vote of stockholders representing a majority of the capital stock.

Three inspectors of election including a representative of the New York Insurance Department were appointed by the Superintendent of Insurance to supervise the votes cast at the policyholders meeting at which the plan was submitted.

At a special meeting of policyholders May 25, 1916, the plan was approved by a majority vote of those policyholders voting at such meeting who were entitled to vote. The plan was then submitted to the Superintendent of Insurance and under date of May 31, 1916, he issued a certificate of approval.

Prior to the granting of this approval an examination of the assets and liabilities of the company had been made by the Insurance Department.

The amount of money required by the plan was duly deposited in the Franklin Trust Company, New York City, as provided and the capital stock retired.

We have examined the certificates of stock, compared same with the company's stock ledger and find that the certificates for the 1,250 shares outstanding have been acquired as provided in the plan of mutualization and are now in the custody of the company, at its home office, each certificate stamped "cancelled " and with an endorsement signed by an officer of the company stating that the shares represented by the certificate had been acquired by the Home Life Insurance Company pursuant to section 95 of the New York Insurance Law.

The company was reincorporated as a mutual life insurance company, in accordance with the provisions of section 52 of the New York Insurance Law.

By a vote of a majority of its directors the charter was executed on July 17, 1916, and approved by the Superintendent of Insurance under date of July 25, 1916. The same corporate powers heretofore exercised as a stock company are retained in the new articles of incorporation.

The kinds of insurance to be undertaken are as authorized by subdivisions one and two of section 70 of the Insurance Law.

Management

The corporate powers of the company are exercised by a Board of twenty-one directors elected by the policyholders as prescribed by law.

Stated meetings of the directors are held on the third Monday of each of the months of January, April, July and October.

Special meetings may be called by the president, vice-president or three or more directors stating the purpose and object of the meeting.

The board of directors have power to make and prescribe such by-laws, rules and regulations for the transaction of the business not inconsistent with the charter or the laws of the State.

The by-laws of the company were revised in July, 1916, subsequent to the reincorporation as a mutual company.

The president and one or more vice-presidents are elected by