Middletown transcript., 1870-03-19
LIFE INSURANCE.

The failure of the Albert Life Insurance
Company last August, in England, with
the twenty-four other Offices it had absorb
ed, involving no less than $40, 900 900,
for which it scarcely had any assets, pro-
misses to lead to the passage of an act by
the British Parliament which will protect
the policy-holder.
The l4ife Assurance Companies bill has
passed its SECOND reading before the House
Of Commons almost without opposition.
Its principal features are deposit of G2O,.
200, the publication of annual certified
statements, and the right of the policy
holder to apply to the Court of Chancery
for winding up order, in the case the
assets OF any company appear to be in
sufficient.
The facts brought forward in the dis
cussion Of the bill show the enormous pro-
portions which the life insurance business
in England has assumed. Life policies
are taken out to provide for children, to
secure debts, and often 10 make marriage
settlements, in country where such settle
menls are common, when men are too
poor to make them in any other way
Single men with little property, transfer it
and receive anuuities in its place. Wild
Ows use these companies as saving banks.
In word, these companies become trus-
tees for the most helpless part of the COM
munity, and as this means Il large propor-
ton of it, it is, after all, not surprising
that the contracts entered into by the va
rious British Offices should amount to
e400, 900, 900, or about 81, 1000, ,O0O, 900,
gold. Yet only $50, 600 persons are in
surcd in the British Islands out of pop
ulation not as large as our own. As life
insurance is much more general here, il
would not be at all astonishing to Gud
that the contracts entered into by American
companies amounted to $1,000, 900, 600
We give these facts merely to show the
extent of the interests involved by til,
dealings of these companies, and the i'm.
portance of their character. Yet, hither.
to there has been no law in England to
give protection to the assured, or afford
the public any means of knowing whicl
companies were solvent and which rotten
Prior to 1921, but thirty-nine life assur
ance companies had been established il
England, From 1924, owing to the re
moval of restrictions, they began to multi
ply, Up to 1868, 327 new companie
were founded, of which only one hundred
and twelve now remain. In other words
nearly two-thirds were absorbed, wounc
up, or went into bankruptcy, sweepin!
away the humble savings of many poo
policy holder. A life insurer is, unfortu
nately, singularly helpless in his dealing
with the society to which he hands his pre-
miums. He not only has no right to ash
for information, but would not know hoy
to get it, even if the privilege of obtainin,
it were accorded him. A company ma
be frittering its means away in recklas
4 competition, in wasteful expenditure or i
/, extravagant commissions. Yet the insur
er has no way of preventing the dissipatio
: of funds which should accumulate for hi
Q protection and benefit. The plan propos
S ed in the House of Commons appears in
: great measure to meet the case. 1t is n
/, effort to remedy the worst defects of ver
loose system, without advocating State il
> tervention in matters of contract betwee
: citizen and citizen. 1t is well worthy tn
y consideration of own Legislature Bal
Gazette.