, 1870-02-26
LIFE lHsURANCE A0AI IN

We recently recommended that Lie insur-
ance companies be required to deposit in
State OF National Insurance Department
Understanding securities, in trust for the
insured, to an amount equal at all times to,
or exceeding by proper margin, the esti-
mated sum which would be required to r.
iunn4e %a-~ x-~ts~y-a-~s.a~.o, THO
mendation proceeded from desire to see
life insurance planted upon as broad, eco
nomical, and sound basis as banking has
been, and by the like means. Banking be-
gan by allowing each bank to make such
provision for redeeming its circulating
notes as it thought best. It next advanced
to system Of inspection in which the
necessity Of making periodical
exhibit Of it's condition Was held 10 be
sufficient check. But the periodical dis
asters to banks in nearly all parts Of the
country satisfied us that, while some banks
might maintain their solvency under such
system, and do great good, others would
run into an unsafe expansion OF their
credits andwould fail, doing great mischief.
When the country shall have come to
- ~ .asa+ -a,,as,. ..to.-n" - ~. - -ss ~ ~
tha T,;or ,aft nn rau IN -re+o,, ~ ",
tional Banking, with paper currency
whose redemption in gold at par will be at
all times secured By adequate deposits Of
~
,oe....;.a - 49, - 49, go rN
aaoa noa.,t,,s~ts - H. aa,a.sss e - - 49,;
-, es.;.a1a - sn..a.o- - ~ =. 80
e. $50 ~ 49,. - sis: 80. ~, - sI114
m.", 80. - A. ~ ST. ~sp..s1 -. =
sps. .s,Is s'' ~. ~ u". Hu e.su ~ Aue't
poa.! s' .sas ~ ~ "un' .uAs sAoe.lons 1u'
p.npe .Das ~ ,,a4o ousNt ~ nolo so"
su4.ies ~ pio,ees .uo puoa'c against ln'-
pos'uo1' :. sn,l's 1a's ~. ~ tuo purpose. .ne
..k.ln '1'1 ~ ~ eu0pau1es oolnl''
., ,oo ~ ~ - ~o o4'S
>, ioo psi ~ - ~ me plesea' .'M satue
G e,s ..sn = t,o4.e. e., =, u. uepos..s aetoa,ty
-o ~ .eseo s ~ .Ao '.eee oiAee .,1 'ne
'eneAN y. @Do '47u,eu oeeot' o0', u pst
CELL " 'ne Bull lucy ouen' ~ secose' X
any oepoe'' oi securities ~ an % TO.
qo1fea tof shAt purpose Ihe deposit
cspltalS of The coplpanies resident in
New York amounted for 1865 to only
S5.42O.COO. while the re.insnranne
s
VA setlma'eu ns Inc insurance department
| at SCI .2G., ,G5l. .1G. The hitter is the nYe7
ent indebtedness Of .he con,non;sa IN H.;
insured; the former is the deposit of "A,
crrities rnaae IN 4te stntn nan,,+..... -.
e1A1eh A1aoe III 11e olate department t1
insure its payment-the deposit being less
than ore-twclith the sum it pratends t.
secure, The requirement Of denosi
capital at ali admits that the State is boont
to p1otect the insured, The advertisement
by the life companies Of these deposit cspi
tails show that they are supnosed to indno
peop1e to insure under somo vague i'm
preston that the State has fulfilled thi
doty. when. in fact. the securities denoa;.e,
amount Ia ONLY from ! To 8 mar cent of IN
sman1t 49, oonnan;as .,!eaa. 49,. - ~ ~
;nsn1sd md ara dsils hecon;ne n,ors ~
80 49,, % -. ~
e'e ~ Wv - NV "'a'
requires any deposit, 1t should require on
which would secure the insured, anstead
kcipg O nero delusion. We, therefore
proposed the following:
an view Of the TACT that different nnsnortue
d:f.r By nearly loo per cent II calculating II
at certainty pertaining to contracts extending Il
10 lotR peisod into Inc tntufea iaete dtpoiits {
s,cu.llies ought TO exceed b. from 20 u 100 ps
cent the esuuated coat Of re.in1urng the polio
holcers-''
To this The Insurance CIrpnic}e, Of til
city, replies:
1sincsE y. o9fSe ~ :r,' nJ ssarios ~ ~
ina tne present vs1uo Of lie policas. !"
We comply with two examples: