, 1870-03-01
The SolvencY of Lille Insurance.

IL Tie Editor cf Th4 chteaao Tribune:
To The pnblic, the tolycncJ OF Insurance com.
pan:eA Is nattEr Of tho deepest 1n1cre8,. 1nsti.
tuuons which propoie 70 take care Of tlults CON.
u1tted to them ior tho heEe1t Of dependent ecea
should De wiling to tnbmis to the Wa1chtngx Ct :
Jealous eye, 2Et 10 fair, honorable and Intelligent
cr.tscilma. THIS 10 emphAlcally true Of the life
i1knrarca bullpesa; and It i equally true that,
while Il has been subjected 10 jaat such crlttclna,
the Yetult Of Sn intelllgent understanding OF the
fundamental pftuctpleA On which It ia based, ths
public has also heard again ard again Of false
promises and Illogical conclusions, which cali
forth this rep.y.
notice ali the pelnt In an Rltlole In TIE TRIBUNE
Of The 10Th. The writer, in speaking OF defsrred
prem.ume. credit uotes. etc saIs: These credits
are Eot eligible loans, macs Eita yies to these.
cu1tty Of the !oa-9. They arc not socrrrd, !"
etc. Now this statement CAIRO. be supported BY
fIcts. The statement Ia not true. The loan Il made
with view 10 the secn.1sy Of the losn, and the
loan i. secuIed. From the conditions Of the polt.
g batter ssentty can be g1oauesa Let q zee
on What conditions It olnds ltsrlE We quote the
.as euaRe Of 4 policy iseued oy the New England
s 4ss 4. one q rs ns
as:se, tuotect 10 1ce eonditfons nnd Tsslrtettons
herein mentioned, and 70 sa:d rules, 10 pay At
'esT 9cs = no,to1 ~ ne,e IS xna
sa 'fss . 20 a ssa
aa 'a Is esss sas 6 sf ns.s.sue.1 n 1'o s.s
70 shiE COZ pax j. at,4tng Incidentally TO, OF In con.
nect'on uith, tn!s policy The sanne, and al SUMS
ra tas sa 70 navs
therefor on The same; ard aa,d debt or dtmaud
policy"
NJ der which the company ,ssuts the policy. and
under Which tie applicant aeetrt< the policy.
Now, With these cond',ons ana agreements Ia
tue potey tssutd and accepted. there Is but oHe
event tha: .'an prevent me company from COL
lectilR credit, loan, OK deferred premium, aud
hat even! "a thu: ne insured has no clam sRstnst
a:ises sgstrAt the company, 50 certain Ia the loan
secured sId . Ill he collected.
81 Bat me ss1Ler eeys the*e e!ed!.s, loats, etc. !,
nuai premiums In II stslmeats Of in r,r: 81 wnst
before this "ne,ce coz pet!tion he:seen r,gai
con pa1iea began. u the Hrltaf, under revte =,
aware Of tnla fact. Does ns forget whea tmi
TEN az lttrcdnccd7 II be dee. not now can Ills
inference be lust ted Ae shows that he Il not
aequanted Huh The conditions and agreements
Ulcer which roucie1 are fesuei and accepted, nor
With the hthtrrJ OF the business In this country.
Where can company IN America Be found taas
Toi a. ssss suo
II such canEot be found, AID II The soltenct Of
American companies depends OF their aollty to
safe, entirely sAle. For. ~ We have before said,
Jest - certain ~ policy becomes claim By the
ocath Of the injured. Or, 10 case Of erdowment oJ
the expiration ut the endowment period, and there
il aaT part Of the premium On tna polc1 not paid
OF apy money ii The posseaatnu Of tho Insured be-
longing 10 tbs company, that macn OF tho unfe21.
led aaieta vii be realized and no lo1s w:ll be sus.
| saibcd.
Some think that to Becure the solveucy OF
| coupary the ptemtnma mutt be paid Twelve
nonshs IN advance. But II paytrg r~e!ge month";
In tdyarcs makes fo!sencJ AMER than paying nine,
stS. OF three months IN advance, then % pay
Rater, and sixty aafer tt,1. aud tue Vhns expect
IcJ safest OF all At asa ~ BY actuartsa' rate Of
Eortality, the expectanoy u ko.os years, aud the
net S.uE!e premium, II per cent tnterest, 426lsf,
| ard the net AEnuei premium $ia,6l Der Sl,oo0 10.
| sufed. Now, u the boEepcJ Of company IL safe
eanss 70 p1 1esR .ae a2uaa
Inc 1fst q eyerJ year, how u II that II Is not
| t2fc In rtcetTtpg RemtAnnnal premium in I'd.
| eIEhttetn II the one-f0tueth NAY be fecsiytd
vmnsns $, any nots, oon,.ass q a5s6iag elsa 70
hall o! the annual premium. with moi ss.uttd
by the other hall, be tAteu with ssfety. II tho
taia1ee ,he eq1erey er 4 tne pa9neSss ae Or The he
length Of time besWeeu them hsa nothing to ,lo
wth eolseIcy. Tbs length Of time Is only . nat
solVency II concerned they might ln,t - welI Be
nado at the n1st Ct eyer1 month Or Il O'CLOCK
| Tho amouus Insured Il prospective ana coudI
ttona1 liability prospective because II becomes
liability OF ~ when future event occutH Rnd only
eo1drs 10 aeseenens II II ,sea % not become a - !
claim By the ttruo tho premium which has beeE
paid u earned By the company, 1t cannot oeeout
1he A1ttcls under review coses with the follow
| tpg sepiepce. For While a wel1-IeEu.a&ed fYs,eu
osn as ee sss ~.
Hye and 1r6olVent can only be Characterized ~
sE1rd;e on domestic arecttong-" Nov, let u nea,
me e 2r1 IT, ess
for 1859: The ogures give the su:al liabilities .
tic companies doiER business in the B:ste of New
atove t1ese iapinties oi 81, ,sla. s:a.ca.' Nov
With surplus orer aud ahore a1l lfAotl!tiea o
nee1lJ slpteo oeo Ia there my present Insolvency
ws now psss % me cnarse, or implied cnarge
lha. The life Insurance s5stem u = swtndie On tht
A. IL - a1 ,hs as w'9sss
port, page 11s, paragraph Il found ~hieh i
quite cltaf and Is applicable. The paragraph road
eIper.e1ce, thc snperinierdent is entirely me 1
nual statements Of our insurance companies n
Eost rellsb1e a1d trusiaortdy exaieisa male )
A1y can Ct financial Of noueyed in..isusions
Tae tew .s..se1 sseGan.sg d,4aspaseies s!nsa VI,
t tions q 10y ilna T ia III. or Or any osis o:ne
+ nation can STOW such tull detailed an
perfect exhibits OF assets aud Liabilities, Income
eIFeEdttuTea and general Information, accom-
Iaried alto b. minute detailed schedules IN The
selves Almost equivalent 70 sn ne1ca1 re.sonl
psse1t iscts pseis.s 10 -nier mo a. u elaSe tas
Tle srsuukn. "a 70 The aoundAns snnc,encg q
The SeT Tork reinsurance luad." TIE TRIBGk
Rlso di1eclJ. o. Indirectly charges that the bas
IN our county. We turn again to THE TR1nrsR
!. own w1tnesx. See report Ior 1858, page 81: "Lu
1n4u1aIce nasisg necone ~ hanored and yAlz