The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-07-22
NEW YORK HERALD SATURDAY, JULY ~ 1871
A New Dep.rtur. in I..ur.aos.


New Departure In Insurance.
The assembling in this city of Commissioners
connected with the Insurance Department from
over twenty States points to q new departure
| In the history Of insurance. An Official report
Of the arst session, from May "a to juno 2,
has just appeared, and the public are indebted
to Mr.. Henry s. Olcott, Secretary of the Con-
vention, for this able compilation. In his ex-
cellent preface to 1t he has given succiuct
history Of the different branches of insurance.
Several important addresses were made to
the Convention by gentlemen who have been
for years connected with this interest The
information they afforded as to the practical
working Of the system will prove Of general
value, and the statistics, furnished by the most
experienced authorities, will materially assist
the future labors of the Convention, which is
to meet again ON the 18th Of October. From
Mr.. H. A. Oakley, President Of the National
Board of Underwriters, we learn that durin g
the twelve years the Now York State Insur-
ance Department has been in operation the
aggregate amount of capital employed In the
business Of fire insurance was $4S3, 93S, tel;
that the amount Of premiums received by the
New York companies was SI68, 487, 257, and
that the losses paid were $94, s49, 497. In
other States the aggregate amount Of pre-
miums received was $122, 900, s07, with losses
of $73, 800, 416. Mr.. G. W. Savage, President
Of the New York Board of Fire Underwriters
and Of the International Insurance Company
ofNew York, alluded to the opinion expressed
| by Lord Mansfield, shat tho relation which
exists between the assured and the assurer
should be one Of good faith" Mr.. Savage re-
marked that in consideration of the low rates
at present charged to cover the fire risks 1t
was impossible for company to verify the
statements made by applicants, and that in
consequence q false af1idavit should be re-
garded by our courts Is fraud. In speaking of
the Importance Of fire insurance to the commu-
nifty he asked who would risk the vast sums of
money now daily invested In all the large cities
Of the Union, and particularly In New York,
in buildings and merchandise, II It were not
for the protection given by fire insurance.
Would mills or elevators, or any of those
structures which have become absolutely
necessary to our civilization, be built II not
protected against loss by are2 OF the advan-
tage of this risk resting with = corporation
rather than with an individual he said =
''The responsibility Of company and their
ability to pay can be known exactly, while 1t
would be difficult to determine that of an in
dividual." This is certainly plea for more
legal protection from fraud for all companies
engaged in the insurance business, Of what
ever kind, than is usually given; the inter-
es.s of the community demand 1t, for 1t is
known that the rates charged by the fire COM
panies are regulated with view to ascertain
which the law, 1t seems, fails to recognize.
Mr.. Savage testified that these corpoi atoms
are doing their full share toward the building
up of this country and promoting its advance
ment and prosperity.
In the marine department of insurance the
progress of modern nautical science Is illus
trated by memoranda Of premiums, obtained
from the Atlantic Mutual Insurance Company
| Of this city, which showed an average reduc-
ton Of about one-half in the rates paid now
| as compared with those charged at the be-
| ginning of the present century. Mr.. Batter
son, who represented the Travellers Insurance
Company Of Hartford, stated that from practi-
cal results it is ascertained that the law of
| average in regard to accidents was equally
reliable with that Of mortality. For instance,
for every person accidentally killed 1t
Is found that about eighty persons receive nom
fatal injuries, producing an average disability
Of twenty days. The monthly average
for accidental dead claims had been 81, 726,
and the monthly average for personal injuries
non-fatal, 1854. Mr.. Ezur Wright, late
| Commissioner of the State of Massachusetts,,
unfolded his views Of the valuation Of policies
and the question of surrender values.
| The history Of life insurance, as embodied in
this report, il remarkable. It has been Of
slow and laborious growth, but its nature and
| influence being better understood, It has now
become very popular. This Is indicated by
the figures given in the State reports, which
show that since the establishment, in 1859, Of q
State Insurance department the volume of the
business has been about fifteen times a. great
as that Of the previous sixteen years. This
progress is due to a variety Of causes but we
notice more discernment than formerly on the
part of our leading companies in their dealings
with the public. This is recognized and ap-
preciated. We have already alluded to the
| decision Of the Equitable Life in regard to
| permits to the members of our militia. As an
illustration of the good faith growing up
between the public and these corpora tons we
may mention that the above company, which
was organized at the time when life insurance
took fresh start and under the influence Of an
altered condition Of things, has only had occa-
| sion In disnuta in our courts three claima-