The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-06-27
LIFE INSURANCE.

The New California Law and the New
York Life Comprehensive Old Policy
Holders All Right and the Com pa nies'
Expla nntion.
The life insurance companies OF this city and vi
cinlty have OF late had good many growls with
the Leg slatures Of the various States in which
they do business; but the biggest hubbub yet has
been created by the passage OF law by the Legis-
lature OF California, requiring all outside compa-
MES to appoint each an agent OF the State. TO
reside there, and whose actions shall be binding
on the companies. The passage OF the law, 1t
seems, was looked upon as a disaster by the Cali
iornia policy holders OF the New York and otner
companies, IL was generally believed mat the
companies would withdraw their business from the
State. All the companies nave Withdrawn. but
they have determined 10 let the old policies stand,
but not 10 enter into any new business in the
State. This determination was come 10 after all
the companies had consulted one another on the
subject. and the result is the following circular,
which mas been sent 70 the policy holders:-
To THE HOLDERS or Policies oY LIyE INSURANCE
STATE OF CALIFORNIA =
q and 80 1874 has made impossible tor respectable lite
insurance companies of ether States 10 transact new
me in quesqon to have been passed haste,
and under no demand from the people They still
%nca have received ocia noce Of them rom the
STATE authorities and most Of you viii doubtless be sur
section Ole requires every company Of an
there %ho ali poWers 20 e an
nys Officers ana r. IL 81 s e9mpan to nd i, m
any act statement representation agreement made
o oy m a ~ the IS sd The done
Indeed hs agent y made superior 70 the company it.
limited by It's charter which eompes them e invest
equal Justice e every policy holder wherever he
ISs a 4 and not s s% 81 cS xh
MA ard me new act % your n that
iorna 50 as 10 be subject to law Of that state and
OF no other such proy 81, can have no effect but
contracts in California are concerned and subject the
incurred In BUSINESS Conducted at the discretion and
Such S an agent can issue policies on old men at the
charged Tor the young. He accept payments
water lots minng stocks, at any valuation. He can
s FUNDS on any or y he can
the hospital Tor incurables One agent with these
pSny before his errors could be detected and any COM
pany winch should consent to appoint such an agent
pies the California law adopted throughout the
country that company could dc general business
except through qry Or more seat
agency in single state would be to sacrifice The whole
the business depends and to invite State adopt
This law also requires every such company to agree
that in Of litigation with citizen OF California the
dcuon; and that IT viii not remove any such TO the
Courts Of The United states It thu, requires US to be-
the constitution ana laws Of the United states and
s9aranieed 70 them BY the national laws and Courts.
S das HAT sa an the e o MSa De an
we at Is, bddnE can destroy nn any way the arsdc
this may be, it is certain that any company which
81 @ Willingly Of TOR bs the @
and mpericctly considered decisions of forty dit
ha policy ne
This provision therefore, requires US o be parties either
obilgatIoi.or else to q criminal breach Of trust
ques US to pay to any policy holder on the surrender
4s re- Of @ Of
rule founded upon no principle recognized By any
is only without equity in It's application to different
Kinds o. ry nid Pea in prSce
pany subjected to It, Neither our charters nor the
forna, the duty of seipreseryation will permit
make the policy holders Of one state vleged and
stT9y the ecmpanes il gt ta TO AL
OF another stae continue to do business il Cali
igTna under the present laws without ,orieng il
oequity between its members and entering on the way
on us our policy holders in other Staes Would be Justly
alarmed ana the states which have granted our charters
-. he companies whose names are subscribed are,
your state The ourdensome provisions OF the recent
ae sey ap e be are ny asa
pany Of the proper nethod OF eommnnication with 1t,
thai hf L Sag a 2S B. s nsur
Life
Lie Insurance Complain Globe Mutual Lie Insurance.
Company Life Association OF America, Manhattan Life
Insurance Company Mutual Life Insurance Company OF
United States, New York Life Insurance Company. North
America Life Insurance Company Northwestern Mutual
Life Insurance Company Penn Mutual Lite insurance
Company travellers insurance Compan United states
Life Insurance Company, Washington Life Insurance
Company
The New York companies, by the way, are just
now laughing IN their sleeves over bin that was
passed by The Maine Legislature lately. The idea
OF the bill was to make companies not residents of
the State paw a certain amount OF tax on the pre-
mums received. The bill was passed, however,
with an amendment tackled on to 1t that the tag
should be subject to the legal reserve" AS the
reserve IS always from three to five per cent as
large as the premium Received In any year it re-
quires no argument 10 show that the wise legisla-
tors builded better than they knew for the CON-
panies; for, in fact, they actually passed law
which. intended to place tax on premiums,
really prevented any tax being imposed at all. 1t
is not 10 be wondered at that the New York COM
panies should be just laughing heartily over the
blunder OF the Maine law tf) makers. The blunder
is put another evidence, In the opinion Of many, OF
the stupidity Of members oil our State Legislatures
In general who attempt to legisate upon matters
they know nothing aoout