The republic. [volume] (Washington [D.C.]) 1849-1853, 1851-04-08

Many of our contemporaries have recently
given currency to paragraph intimating the
formation of an association in England T" for
the insurance of character" coupled with the
remark that ''this is certainly something new
under the sum-"
1t may be usefuly stated perhaps that that
which is thus described as an experiment, novel
in its character and probematical in Its results,
has in fact long been known IN England and
Scotland, where the soundness of the princi-
Piles involved has been satisfactorily demonstra-
ted. For some years past at least two socie-
ties or companies have been in existence there,
with agencies in every considerable town in the
kingdom. They are conducted on the plan of
ordinary insurance companies, with subscribed
capitals, and their object is literally Integrity
insurance." in other words, to furnish emf
ployss with pecuniary guarantees, in consider
alton of the periodical payment of premiums,
proportionate to the nature of the situations
held by the insured and the amount of the
guarantees they receive.
Everywhere persons holding situations of
trust are called upon to provide guarantee for
been accustomed to enter into bonds for this
purpose. This system has operated harshly
and unjustly in innumerable instances. Some
| times young men of promise are unable to OBJ
tain remunerative mercantile employment in
consequence of inability to furnish Pecuniary
making applications to friends to perform ia
vor which implies risk, and may end in loss.
In others again, whole families are suddenly
placed in difficulty by the dishonesty of some
junior member, for whose integrity heavy sure
ties had been given.
To obviate these disadvantages-to afford to
| every young man Of good character the guar
| antee he may require on entering upon conf
Dental clerkship, and to remove the necessity
for unpleasant appeals to confiding friends-the
system Of fidelity insurance was commenced.
At first it was looked upon with distrust; by
and bye its reasonableness was recognised, and
the bona .fde nature Of the companies estab-
lished and, at this moment, the sureties fur
nished by them are preferred to the sureties
obtained from private individuals.
The course of inquiry pursued in reference to
applicants for this species Of insurance is as
minute and careful as that adopted in life in
surance. The applicant must furnish evidence
that he is eligible; and, when this is done, his
proposal is accepted at the published rates Of
the company. We have not copy of these
at hand, but believe that the lowest rate charged
is one-half per cent. per annum.
In each instance the shareholders have re-
ceived good dividends ON their capital; proof
that the system is both acceptable and profita-
BILE. Their success has induced many mutual
assurance societies to add this department Of
business to that of life and fire insurance.
1t can scarcely be doubted that the plan might
be adopted with advantage by American in
surance offices. 1t is remarkably simple; ex-
perience has shown it to be safe; and the
circumstances Of American society present pri-
ma .facic evidence that it would receive imme-
date and extensive support.