, 1869-10-31

Insurance In America and England.
The recent failure Of the Albert Life Insurance
ComrAnJ, Of England, has not onlJ caused severe
aad Niae disHaJ In that country, bnt has been
made the occasion OF much nufncpdly comment,
ana mnHy unio1ndea predictions OF diaaste1 cou-
cefnicR the future Of our American companies
The c0upany raa established as long ago as 1888,
under the title Of the Free Mason'd AMI GenerI
Life ASSURANCE, Loan, -Annuit{. and Reperstonaty
Insurance Company. in December, 1919, the title
YEA changed to the Albert Life ASSURANCE Com.
pany.
The bonnat capital was .eso0,oGo Of which
Gltsoti fE.l been paid up at various tloes. For
more than rhHlJ JcarB the company has appeared
to prosper; It's directory comprised men Of the
nrst position: It's agencies extended throughout
tle Ep1tetl Kingdom, from England to india. ia
ntrual income as 70 les1 thai faso.Gd1. /; i no
*ohdet that the collapse Of 4ucn an lnsttEhAiu1
caueel the widest consteruntlua aud alaEm, NOT
arc no less than 2 Isl policy hoders and their s-
pendents, but extending to every In.u wno either
~ ~ ~ oWn iise Insured or nolls insurance upon
lBut it is without good reason that thts dtsastef
khocld prejudice the btandlrg Of our own iife it,
f1tJ IN the hands OF any Who hare siaked unon
the solsency Of those companies the future pro
vision of their families, or fhc,F own support iu
somewhat 1t length, the essential differences bc.
tween the aomintatEatt0n Ut the Albert Life In
4QfA1CG lCl1p1nY &Hu Ln&t OF our American ttIa
eon,pan,er, and the to.it reasons why ths hitter
SEc exempt from bach disaster Is has ovet.2xen
the former.
In the nrss place, the Albert Life Insurance
Company uld rot tail because Ut any failure IN the
Eetnod By Hhlca lie insurance proceela The
ols!hets u LIE insurance consists simply IN the
Of AuNey IL an antenn.se iife, W, The usata of
the buyer, VITO is called tho Insured. How much
II y III have 10 pa5, The company lssnIn9 the pol-
c!et, or tel1E8 It's promises 10 pay, kQoHs full
well. nut wien thai anoans vii taIs due, ansi
i0s INIT Il viii fecetve meantime. are matters
whlch, III the Gaze Of each ,ndsIdasa Insured, the
trough IN premiums 10 that, carefully husbluled
AID prudently Invested at a certain rate Of
Interest, they wi! e9ual tho amount which
4 nas promised to .pay, ~ Of before The
time that 1t i2l:A due, the cuup&uy Is ss+, md,
honestly cnEbuced, its lasured nay test secure OF
n.Ss %hsss sae eoarsS; iii rseasss. ssas sos 20 te
fAte at which IT. own Liability will MATURE heu2
IN each case, quite Uncertain, hoH can il cF rs
nat!uns Know &C tnas It ID receiF1ng enough 10 meet
Fortunately. what Is quite uncertain IN ,nd!rttu-
q casts Il quito c~Zta1n regarding a mnitl.u.lc.
0! III defamation becaase Of Jour msdirecsion Of
Oh omcial's teKsgetce, IS : chznce Hhico, small
Of Rfe2t. detes Ill measurement OF calculation.
ny n HanJ separate tndlE1duaie, The percentage
rh'ch Nl!tto tail Gan be exactly calculated, and
the chance of anJ ont OF tneu lss drstiua
So Of hundred thousand lives, when and how
Any one ot them will fall ID quite be1ont human
KEN 10 determine; G1s Nh2k petccItage Of them
ces5lye year, AID wnAt chance Of destn u set over
tRatnet eace life IN any given ycss, the recorded
s1psiaenss e q m.oJ centuries aoa MAJ, losai.s1ea
Tue Albert Lie Insurance Company l:d not fail
culatiouA ii policy did not Ole any souuer
OF fltet than might reasonably have been expect
e.; sat s ssee'1ts, taey IA! s;n nssn PRUDENT,
tneo.J which ecrtxa critics have oroached, that
Of pleEtr THAT l. requires It least thirty
yeafs to lest lie stsesstn Of hfe insurance CON.
= 9nls na fso4s sne for osse 3ea
the itccIne frotn prenin:ns. have COVE apaa .
company. thzt III true standing Il regeaed-H
I'd aa. essn ssa IL q
premiums, and each policy holder pa5a more n
cost Of Bis tnsurance. ii order to provide fund
nom Hh.ch the evident denc1t Of kne current
r he atss = ne 55ss Se Po
t;esm epstne ac:anu'stes po1er At certain Pc
rioas or each retoiuiiop. 70 c&fTJ the machtnery
e. &! "se0''t' A1u 'ae s's"la sAst'' no i'fse At
II this critical period nas been anticipated in the
rnnAce.Sens spa Investments Of lue ,nAufa1rs.
romuanT 1s vel IA IN the construction OF tts pre.
m,utu tapsea there Il 10 more danger then {san
enough has neen accumulated, fne macainef1J 1gs III
1un % as snoofpy ant do ID WORE - weu u the
erd as IL The middle Of the At-0ke.
Just here life Insurance differs from Almost
ererI oloef financial Institution atnupR nenln
The Feed Of aoeunnfatsng this reserve
Large ard liberal ~ may b the oq{iaT al
rr1f, deaths A1B comparatively rare, aud fatal
e1tI1vaRaneE Of expenditure doea not reveal
itseii IN failure 10 Feet maturing clx1mA Tne
vital question - not, can the company pay It's
losses Of to-day. but u 1t Sufficiently providing
SgAlnkt the tpcIeaAtng 1uases OF the future7 The
ZANE dAta which enables us 10 calculate thu prop
Ct premium Rives Us the measure Of those future
liabilities Knowing IN what constantly -tacreas-
leg tntto E1ven number Of Insured viii die, aud
AstuU1nR that four or tour A1u One-haH per cent
interest viii certainly be realized upon the iu-
Sea'henf& Ok the COMPANY. We can weiEh with the
ntnett precision the burden that viii fail upon
the company AZ any certain time, aud dsterralne
~ abllftI to meet Il In other words. knowing
Fnen 1te promises TO par vii mature. We can caa-
culate their present vaine, and 70 ascertain
refonsteA OF the company or not
Thai this calculation may be made ny competent
authority. and that e7el7 policy -hu4def may Know
The etandikR Of tic coujpauy in winch he ls 10.
tufed and It's 1bh1J TO nee, ,ts ebliRs1inns. pres
ent AID prospective, the State OF MASSACHUSETTS,
whos< action "a tbs premises has alnce been Iol-
lowed By The a'atts Of New YprF, Ohio Illinois,
Missouri and California, enacted = laW creating
The oflce of An insurance Superintendent, who
has no connection wish, OF lAtereas 10, anT ta4uI-
Acce company, and Nho ts held tn kuff1c.eut bonds
Tor the faithful performance Of lls d1leA No
company can commence bnnnesa Ia the State,
whether chAt3efed saa1n or eisexbesp, Without
kQpn1tt0E til Akt{3 to his tp{peQ&tQp. and teceiF-