The New York herald., 1875-09-23

tions OF agents which they have reason to expect
WIN be continued by a second payment
Life insurance companies should be held 70 make
good the promises and representations OF their agents
ana solicitors concerning the policy and practice oil the
company. In all other contracts men and corpora
tons are held to make good the promises and represen
taons they or their agents make selling by sample,
or IN contracting where the other party has no oppor
tuny 10 inform himself of the truth of what is SAID
Where one has the right to- and necessity must rely
on what Is SAID by another the law compes that other
10 make his promises and representations good II
this law the law also governing life Insurance
contracts companies would DO compelled 10
in the selection Of agents and solicitors They
would no longer afford refuge to the class that has
made the very calling of life insurance solicitor
proach. They would select agents and solicitors rs
banks select cashiers and elers and II those they select
should prove unfathfu they would bear the loss the
banks do. If companies will not such the law
should not permit them to throw the burden OF ossea
on the policy-hoder. And in all cases notice TO the
agents should be notice the company and the prin
ciple Of estoppel should apply accordingly.
g. The principle of caveat emptor should be applied
TO the Insurance. companies Upon this principle all
other contracts made II Is applied in all its viRof
by the company to the policy holder; let it be applied
equally TO the companies. Let the purchaser beware
says the law; let life insurance companies do likewise
BY their agent or solicitor they select the applicant
and by their medical expert examine him. They ply
him with searching questions and make the fullest in
vesgations. II they accept him as risk after this
unless he commits fraud ON the agent or the examiner
they should pay when he dies.
A. There should be no defence permitted for any mis-
statement In the application after five annual pay yments
whether II be made irauduently or not fraud thai
cannot DO discovered in such case IN five years cannot
be very damaging. II policy holder commits suicide
while sane the policy should be void, and all premiums
received by the company with accrued interest should
bo refunded, but more should be refunded than the
principal sum named In the policy and the accumular
tons thereon.
g. II a company defends against payment and judg
ment Is adverse to IL the judgment should be for the
principal named in the policy and the accumula
tons thereon and ten per cent interest on the total
sum from tho time payment was demanded. The judg
ment should also include the attorneys fees OF tho
plaintiff and all expenses incurred in making the de-
fanc lfa RhOulU under
restraint that tho law imposes upon railroads, ex
press companies, all common carriers telegraph com
panies, hotels and all public institutions None OF
these are permitted TO make the contract what they
wish TO be for their own safety No one OF them may
provide against the consequences to 1t of the careless
of its agents. should life insurance companies
have greater liberty.
The resolution referred TO the Committee on
Legislation.
OTHER ADDRESSES
Mr. Rhodes read the draft OF bill for the regulation
of forfeiture of life policies and followed
by Mr.. Sheppard Homans who read paper deains
principally with life term matters
The next speaker Mr.. James G. Patterson, Presi
dent OF the Travellers Insurance Company, OF Hart
ford whose address reply to Mr. Finch's charges
Mr. PATTERSON said that II the allegations presented by
Mr.. Finch were true tho in whose hands was in.
trusted the insurance interest Of the country should be
behind prison bars. He then combated and denied all
OF Mr. Finch's Indictment and especially emphatic
In declaring that there no contract known among
men that was clear and explicit the contrac
between an insurance company and its policy holders
Mr.. PATTERSON several times appaudcd while max
ing his address.
MIR. William Barnes, of New York. next made some
remarks the purport of which have the Conven-
ton consider the expodency Of the formation OF de-
partment of statistics at Washington. In European
countries he said more attention paid to this sub
ject than in the United States department of stas-
tics should include all the industries of every State
about which people had very little accurate infor
nation.
The Convention adjourned to meet to-day at noon.