The republic., 1851-02-17
Life Is,surance.
From the Rochesfer IN. Y.l liner

From the Rochesfer IN. " dmericon.
Below we give the substance of m act reported
by Mr.. Underwood, from the committee on banks
and insurance companies, to the Legislature in re-
lation to all companies transacting life insurGncs
in this State.
SEc.1 Every such company shall, before March,
1851, deposit with the comptroller esum Of loo.
900 in public stocks OF this State or the United
States, stock or bonds of any of the incorporated
cities of the State such stocks to be at par in
bonds and mortgages on real property, and shall
be worth fifty per cent above the amount of the
mortgage, and such mortgage to be given in good
faith, and for money actually loaned. nsi
SEC. 2. These securities shall be held for the pol
icy-holders but the company, while it remains sol,
vent, may draw the interest Of the same, or ex-
change them for others equally sound
SEC. 3. In case any company becomes insolvent
is enjoined, shall be wound up, the comptrol-
ler sha! collect all interest or dividends due the
the proper officer of State company, tho agent
Of foreign company, to furnish him a list Of all
outstanding policies, and ehall alse by published no.
ce require each policy holder TO furnish him the
expiration of a year convert the securities into
cash and pay off the liabilities, beginning with poll
cies already due and shall rata or in full rcim
burse the holders Of policies still living the sums
SEC, 4. The securities deposited above pro-
vidcd shall be taxable in the county where the prn
cipal Office Or agency of the company is located.
SEC. s. Foreign life companies shall. in addition
cent on the premiums received in the State during
each year. y s4
SEC. s. Every life company doing business in the
State shall De subject to the rcquisions OF Sec 10
OF the act of ls49.
SIC. I. Every violation of this act, or the act Of
ls49 shall subject the party offending TO iinc OF
$500, TO be sued for by the attorney OF the county
where The violation is committed half TO go to the
informcr and half to the county treasury.
SEC. s. fany company fails to adhere 70 the pro-
visions Of this act the attorney general shnll sum-
mon il TO appear before the supreme court nt gone
raj term The court shall hear the allegations in
summary manner, and if averse to the company
the attorney general shall proceed to close up its
concerns.
These are very stringent provisions, but ncces-
sary in view of the Immense interests at stake,
and the stability and security that should attach
TO all institutions dealing with delicate subject
pany would be calamity that cannot be guarded
against too strictly. The miscry and ruin that
would be cntailed incaculable. There ia
radical difference in insurance upon life and upon
property--a difference apparent at a glance to any
one at all familiar with the basis upon which each
operates. The life insurance company is-it is no
hcton-a savings bank for the widow and orphan,
and upon its careful management and the integrity
of its directors rests the pcrmonence OF its opera
tions, and the amount of returns il will make when
death has taken away the head Of family, and
left the widow and the orphan to rely entirely
upon the fund placed in the hands Of the company,
aud then To be returned and yield its harvest OF
golden results.
There is yast amount Of incorrect reasoning