The Liverpool Standard and General Commercial Advertiser.
Liverpool, Merseyside, England, 1856-03-04 00:00:00

Ensuranct Notice.

INDISPUTABILITY THE ONLY COMPLETE
SECURITY IN LIFE ASSURANCE.
(Extracted from " The Register.")
What is meant by an indisputable policy ? In the first place, it
is unlike other policies; the adjective being used to imply some-
: thing to mark and distinguish such a policy from all other poli•
cies. In the second place, it means much more—it implies that
the policy to which the epithet " Indisputable" is given cannot
be disputed, except upon grounds beyond the reach and power of
the contract ine parties to control. In other words, the policy is
represented as being as indisputable as man can make it.
Nothing can be more embarrassing than the situation of a man
who, after making payments to an Insurance Company for ten,
twelve, or twenty years, on the supposilion that by such pay-
mentshe has purchased for his family the absolute property in a
reversionary estate, is then told that at his death his survivors
may receive such property, but that there is a great chance—a pos-
.' sibility—amounting to a probability, that they may not ; and that
the contingency depends upon circumstances which he cannot
foresee. Yet such is the position of those who are held as wholly
responsible for the precise and literal accuracy of every statement
in numerous documents and schedules which precede the issuing
of a policy. Take one of these schedules as an instance of aver-
; ments, upon the accuracy of each of which the whole value o#
the policy will ultimately be made to depend i—`• I do hereby
declare that my age does not exceed years ; that 1 have had
cow-pox or small-pox (state which); that I have (or have not) had
the gout; that I have not been afflicted with any fit or fits, or
convulsions, nor with asthma, insanity, or spitting of blood ; and
that I am not afflicted with habitual cough, diseases of the lungs,
nor with any other disease or disorder tending to shorten life;
and that the foregoing proposal contains a true statement o
every matter and thing thereby required to be set forth ; and that
I am now in good health ; and 1 do declare that I have not con-
cealed or withheld any matter or: circumstance touching my past
or present state of health, habits of life, or condition which may
render an insurance on my life more than usually hazardous, or
with which the Directors of this society ought to be made ac.
quainted; and that my private referees are well acquainted with,
and fully competent to give, the requisite information as to my
habits of life. And Ido declare that this declaration shall be the
basis of the contract between me and the said society; and the,
if any true allegation or statement be contained in the said prow
posal, or in this declaratioa, or if any material information be
omitted which ought to be contained therein, all moneys whicar
shall have been or shall be paid to the said society, on account a
such insurance, shall be forfeited to the use of the said societyy,
and the policy be absolutely null and void."
Now, looking at the wording of this clause, it may be affirmed,
without much exaggeration, that there is no human being upon
earth who, looking on it as the literal condition of his contract
with a company, can possess a certainty that the event of his
death will place his family in possession of the sum specified in
the agreement. It is a professional notoriety that there are nu-
merous diseases which may be in active play long before their ex.
istence is suspected by the patient or any one else. Yet, by the
contrivance of making the proposer warrant the literal accuracy
of numerous statements, the clause above quoted would vitiate
and nullify the policy. if it could be proved that the invisible foe
had commenced his ravages at the period when the instrument
was issued. The responsibility of the party effecting the aesurs•
ance is unconditiona , and wholly irrespective of the contingency
whether the" omission" of any fact, material or immaterial, were
wilful or not.
The person who makes the statement must not only declare
that he makes no wilful mis-statement —that he has not " with-
held any matteror circumstance," and observe, net deliberatelyor
of design, but that lie has not done so at all. The declaration re-
quired is absolute as to circumstances or possibilities beyond the
sphere of. human knowledge; and the responsibily of the decla-
rant is equally absolute, no matter bow innocently he- may have
been led into error.
All the authorities- are-of the same opinion as to the sole and un-
divided responsibility of the assured. Thus, Lord Eldon will not
hear of any distinction, as to whether an omission has been ma,
terial or immaterial. "If material," his Lordship observese"that
a materiality may be inquired into and shown ; but it there bea
warranty, it is part,of the contract filet the matter is such as, it is
represented to be; therefore materiality or immateriality signifies-
nothing. The only question is as to the mere fact." This opinion
has been affirmed, to the total ruin of faniilies, by numerous deci-
sions of the Courts.
• It may perhaps be supposed that however close the net and
narrow the meshes which are entwined round the party whose.
life is the subject of assurance'--however minute and impertant
and liable to error are the facts, and yet stringent in construction
of law are the terms of the declaration lie is called upon to make,
yet that by great care he map be able to comply with every de-
mand, and escape without a forfeiture of his policy. But that lie
cannot do; for there is something yet more demanded of him
before he becomes entitled to a• policy—a requirement in which
the greatest amount of care, and prudence, and scrupulous accu-
racy-inof no avail. The proposer must give the names of medi-
cal attendants and two friends, each of whom returns answers
to a long list of questions, and the facts and statements so
received- lay the company, although. the proposer is not made
acquainted with any one of them, are yet as much the subjects of
warranty- as his own declaration, so-that a wiatul or innocent!
error in answer to any of the questions-put to these referees will
as effectually vitiate the policy as ia had preceded from the
assured himself. We can make room for only one example of the
provisions-Just noticed, which we select from-a large family of
similar cares, and from the practice ofeohighly respectable office,
Wilshere re-- the Law Life. Wilshere resided near London, and
on several occasions had consulted a London physician as to hie.
health, beanies having the advice of a-country gentleman. He
came toi London to effect an assurance-on -his-life, and, in answer
to the questian, " Who is your ordinary medical attendant?"
gave the name. and address of the London physician with whoss
report and Cleat of their own medical erominer, the-director ov
the company were satisfied. Some years alter that Wilehere
died, and hie executors were defeated in a claim-against the coin-
pany for the sum assured, merely, med• upon no- other qroundi,
because the name of the surgeon, and not that of the physician,
ought to have been inserted in the proposal.
In consequence of this state of ntattersethere arosein the public
mind a general feeling of insecurity in Life Assurance, which was
increased by tbeperusal of numerous cases-occurring in the courts
of law and reported in the newspapersamust of them at the.
instance of assured parties against Life Companies. but many of
them in which Life Companies were arrayed against each-other.
The great desideratum was to make policies indisputable, so as
to remove all doubt, and dissipate every apprehension as to the
certainty of the suns assured being paid when it became due;
whereby the public-generally would be benefited, and the business
of Life Assurance much extended.
" The Indisputable Life Policy Company" undertook-thia task,
and in order most effectually to make the policies they issued in-
disputable and certain documents of security, they inserted the
following clause in their Deed of Settlement, thereby creating
an effective and legal•obsigation, imperative upon-the Company to
fulfil, and which it is tie right of every assured member to-plead
and insist upon:-
1 Clause 84. " net every Policy issued by the-Company shall be
indefensible and indisputable, and the fact of issuing the• some
shall be conclusive evidence of the validity, of.the Policy;: and it
shall not be lawful for the Company to delay payment of the
money assured thereby on the ground of any error, mistake, or
. omission, however important, made by or an the part of the, per-
son or persons effa.ting such Assurance; and -that, OA the con
teary, the amount se assured shall be paid at.t/te time stipulated
by the Policy, as if no such error, mistake, or omission, isad-been
made or discovered."'
We have said that the above clause forme apart of the Deed of
Settlement of the Company, and that deed. being registered ire
terms of the Act 7 and a Van. c. 110. there is nothing* wasting. to
give it the fullest effect. It is not merely to -be found in a pro-
spectus or other circular, which may or may not be obligatory. on
the Company, according to circumstancesa.but it forms a com-
ponent part of the existence of the corporate body. A mere-pro.-
mise of indisputability is not enough. Such a clause as the above
is required to give legal efficacy. -It appears to have beers care-
tally • and anxioaslye prepared, for the purpose of cuttin& off
every ground and pretext of dispute as to- the validity .orthe
Policy; and we confess- that we cannot find any words or-series
of, sentences more operative, effective, or.compulsory fan, that
purpose. In order the more effectually. to show this, we
would- invite onr readers to compare this clause with the
law- as laid down by Sergeant Marshall in the passages.
already quoted from that learned authority. The initia-
l:Melee clause says—" Every policy issued by the Company shall
lee indefeasible and indisputable, and thefaet of is:Wen-the-same
shall be conclusive- evidence of the validity-of the policy.". Mr.
I, Sergeant Marshall, speaking of the clause -ordinarily inserted in
policies, says, "It is-qgite immaterial for what purpose or with
what view it [a warrant] is made ; but. baits° once insertedin the
policy, it becomeao.binding condition on. ll assuredee.nd unless,
he can show that it has been complied- with, he can derive no
benefit from the- policy." In other worda, an indisputable policy,
when once issuededealares that, de facto, all precedent questiolas
are- hod to have- been linallysettled, wnereas. an ordinary policy
declares on the-face of it that the Directors retain the, power to
keep all these isgestions open to dispute, until they aaye actually
paid the amountof :the policy to the executors. Again, the indis-
putable clause cays,,"-It shall not be lawful for the Cotnpatty to
delay payment of the money assured, cone groundof any error.
mistake, or onsiesion, however important, made byeoron the part
ofehe person or-persons effecting such insurance." Mr. erg.eant
Marshall, on the other hand, says, "The very meaning of :ewer-
ranty is to preclude ail question whether it has bean substantially
complied withor not. Whether the thing warranted was material
or not, whether-.the breach of it proceeded from fraud, negligence,
this-information, or any other causeeehe consequence isehesaine
—Le, the poliay.ie void." In the next place, the indisputable
clause says that, "on the contrary, the amouat so assured shall
be paid at tat-time stipulated by the policy, asdf:no such, error,
mistake, or omission, had been made or discovered." Mr. Ser-
geant Marshall says, " The warranty makes the contract hypo-
thetical ; that,iss it shall be bineing if the warranty is,complied
with. The only question is, has the thing warranted taken. place'
or not? If not, the assurer is not answerable for-any loss, even
though it dicf.not happen in conactmence of the breach of the war-
ranty." Can anything be more conclusive than this in proof of
the superiority of the Indisputable Policy ?- The indisputable
Policy setters all precedent agestions—an ordinary: policy leaves
them all upsettled. An Indisputable Poiley,declaren, by the mere
fact of its. issues, that all questions relating to the health, habits,
age, &m, of the assured are, as far as the company is oencertied,
set at reat for ever—an ordinary policy leaves these points
open to dispute, until the claim has actually been discharged..
Lender: Indisputable Life Policy Company, 72, Lombard-street.
—Manager, ALEXANDER. ROBERTSON-.