Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1873-05-03

bustion or of an explosive character, from i'm
properly secured stove tunnels and defective
chimneys, ill-desgned constructions placing
infiamable materials beyond the reach of the
fire department and without any other means
of extingushment and from the multitude of
other improper exposures which the needless
ness OF some and the ignorance of others
suffer to exist. In the absence of law to
establish such an examination, companies
should combine to employ such skilled men
to visit the different risks held by them and
all neighboring exposures, and report to the
proper parties the nature of their discoveries.
The defects of life insurance are pointed
out. The past year shows large number of
lapsed and abandoned policies. The whole
number of policies which terminated during
the year was liz, J53, amounting in all to
S303, 837, $40, the number of those terminal
cd by death or other maturity being $685.
and amounting to $40, l02, 1888, being 6.07 per
cent in number and 6 81 per cent. in amount
A vast deal Of this evil arises from a misap-
prehension on the part of the insured of the
true nature of the undertaking, its expenses
and benefits. The chief cause of this is the
so called dividend system of policy holders
The eyes OF the people are being opened, and
they are beginning to see that these ''divi-
dends" are only partial repayment of an ex-
cessive premium demanded at the inception
or renewal of the policy, and in no respect a
division of 'profits, as is so generally taught
by canvassers. TO bring about reform in
this matter will require the mature deibera-
ton and mutual action of all parties interest
ed. To show the validity of the grounds
taken, figures are given. The whole amour.
of premiums received by all the life conpa-
MES doing business in the State, during the
| past year was $50 800 099, the amount paid for
losses was $50, 722, 559, while the amount re-
funded TO policy holders was SIS, 90 500 be-
| ing thus nearly twenty-five per cent of the
premiums paid. For the collection Of all
this large sum heavy commissions were paid
in addition to other large expenses ever at
tending upon the receipt investment and dis
bursement of money. all these are to be
addsd to the repayment in order to determine
the exact oycrpayment.
Another evil to be depre Gated is the arbi-
trary rule of assessing rates of insurance
upon the sole basis of the tables of mortality
framed from the great average of human life
no change being made from these to meet the
particular traits, good or bad, of the individ-
ual lives insured Every individual has his
physical peculiarities, giving each peculiar
cast or kind of risk independent OF others.
The general average of life is no more conf
IDENTIFY to be relied upon in forming a iudg.
ment of any individual risk than the same
average of risks of fires and marine classes
Indeed, thus far, it is very generally conced-
ed the doctrine is true, the difficulty consisting
In the adoption Of rules whereby to make the
doctrine practically applicable. To this it is
readily replied that practical acquaintance
with physiological science aud the rules of
lite, as plainly taught BY the history Of tie
race, give to the practical actuary as simple
and as certain rules of judgment as the same
experience gives to buildings and all other
n NJ ms ;,l
property, so with human life there are equally
the hazardous, the extra hazardous and non
hazardous risks, manifested and marked off
by as distinct lines are the classes of prop
erty subject to the insurers inspection, and
to overlook all these different degrees of
hazard would appear as unwise in the one
case as in the other. Hereditary traits of
consumption, dropsy. rheumatism and firm
health, as well AS the personal habits of in
temperance, lust and their opposite, ire as
significant of the actual value OF any risk as
are the corresponding characteristics OF the
steam laning mill, the carpenters shop and
the detached dwelling. Every consideration
seems TO point to the same conclusion, that
the premiums should be specific, and each
person tie allowed the benefits or made to
/ bear TIE misfOrtunts Of his own case and
that these should not be condoned by average
conclusions from the lives of others. This
rule being adopted the other should follow,
to embrace all within the insurable class, so
that not only the aan OF strong constitution
and firm health but TIE doubtful, the feeble,
and the sick even, may find place for his
risk within the lines of the insurance compa-
ny, coupled OF course with corresponding
charge, as in all cases OF extra hazardous as
sumption.
The privilege and duty Of life insurance
are urged in the strongest terms. The sum
paid for lie insurance should not be regard
ed as an expense, but as an investment, like
a deposit i'll a bank, to meet contingency
ever liable to accur. The public are caution
ed against the cheat of cooperative life in
surance. No cooperative policy has been is
sued in this State since the department: was
organized.
The commissioner again aliudes to the i'm
portance OF insurance supervision as pro-
| lection to the people, and refers to the good
results of the national insurance convention,
as giving mutual help to the departments in
the various States.
The department in this State has been more
than sclf-sustaining. For the year ending
July |, 1872, the fees paid into the State
Treasury over and'above all expenses of the
department were Sl,449 80. For that portion
OF the current year already expired, the num-
Der of companies admitted has been III,
WEIGH at $50 each amounts TO $3.50. Lii
censes have been granted to % brokers at
s. each and 1879 agents at 81 each, making
the entire income So, 129. Deductlng S.
500 for salary, clerk hire and Office rent, and
SlG9, 20 for postage, travelling expense, &C.,
balance remains Of 81 ,059 80.
In retrirg from the department of Insur
ance, over which he has presided with so
much ability ana patience during its few
initiatory years, Mr.. Paine expresses his
thanks to his constituents and others who have
rendered him efficient aid in his iabo-s. The
duties Of the Office now pass to the hands
of Hon. Joshua Nye of Augusta, who will be
found a worthy successor TO Mr.. Paine.