Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1875-09-23


the convention in the persons Of Jo'
| N. Spencer. Of Rhode Island, and A T
Magill, OF Minnesota. The committe
also reported that the convention woui
| be addressed by VIM. Barnes, Mr.. Hopt
chairman OF the committee over legisls
ton OF the New York board of fife "
derwriters, and Mr.. Lewis, secretary {
the General Life insurance company
whose topic would be tsxetion.
The courtesies OF the floor were ex
! tended to Messrs, Deane, of Ma achu
setts, and Smith Of Kentucky
Commissioner Finch, Ct Iudiana, OF
| fered the following resolution:
Resolved, Thst there is a necessity 70
legislation for the protection Of holder
OF life policies.
Mr.. Finch was going to speak In fsvo
OF his resolution, but was Interrupted b,
delegate rising to pOiLt OF order, III
point beirg that the resolution wa no
properly before tha convention.
Commissioner Rowe was OF the Opia
ion that the matter should be referred L
the executive committee.
The chairman decided that Mr.. Fincf
had the floor, and he proceeded to urge
the adoption Ot his resolution in an al
dGess setting forth the necessity for some
movement in this direction. He SAID
the contract for life insurance was the
most one-sided known in business. Il
is framed with tue bert skill one side
can engage, 80 as to give immunity "a
the one aud hold the other with the ut
most strictness. In tie continuance Oi
the contract, the conv .Hience, discretion
and judgment Of one side only ia con-
suited. The constant effort was to pre-.
dict the policy-holder in every possible
way, and leave every possible escape 10
the company. The policy is usually II
the effect that it is void and all pay
ments Oh it forfeited if one on whose life
it is issued shall die by his own hand.
The courts have begun to hold that this
only applies when the policy.hC Ter dies
by his own hand, in pOsses-
sion Of his mental faculties. To meet
this, the draughtspnan added that if he
die by his own hand, sane or insane, the
policy should be void, and ali payments
under it to the company forfeited. The
speaker, In dwelling on the defenses
set up by companies, and cited cases in
the supreme court of the United States,
the New York court OF appeals, and the
supreme court of Iowa. Policies, be
said, were issued with greater difficulty
a1d at greater expense every year, and
Notwithstanding the efforts made to
maintain the business at its present po-
sitiOD, it was falling behind. In the
year 1874, 144, 783 policies were issued,
but 152, 555 were terminated. OF these,
only S555 were terminated by death,
while IA, 600 terminated from other
causes. Or all the policies issued, so far
As a record can be had, nearly SO per
cent. never cume to maturity, and of the
number issued, nearly 50 per cent,
terminate every year. Mr.. Finch sug-
gested, law with the requirement that
Ill lifejpolicies should be non-forfeitable;
hat life insurance companies should be
held to make good the promises and
representations of their agents and So
icitors concerning the policy and
practice of the company, and that
he principle "cduent emptOT" should
)e applied to insurance companies;
hat there should be no defense permit
ed for any misstatement in an applica-
ion, whether it be made fraudulently or
lot; and that if the company defends
.gainst payment, and the judgment is
verse to it, the judgment should be for
he principal OF the sum named in the |
'Olicy, and the accumulatiOns thereon, |
nd ten per cent, interest on the total |
um from the time payment was de- |
handed. The judgment should also in |
lude the attorneys fees of the plaintiff
nd all the expenses incurred in mektng |
he defense. He concluded by saying |
bat these provisions were imperativeIY |
emanded. 1t was true that they t1ck
firm hold on life companies, but there
7as demand for just such frmness.
On motion, the original resolution and
ne suggestions contained in the address
'ere referred to the committee on legis.
Ation.
The chair then appointed as commit
se on taxes, deposits and fees, Messrs.
orster, Spencer, McGiD, Welsh aud
Tye.
Commissioner Rhodes read draft of
le act to regulate the forfeiture OF life
lsurancs policies, which was referred to-
le committee on legislation.
Mr.. Shepherd Holmes, formerly of
le Mutual life insurance company of
lis city, addressed the convention on
le subject of time Of life insurance.
MI James G. Patterson, president of
le Travellers insurance company of
.artfOrd, spoke Of insurance frauds and
Audulent policies, while Hon. Wm.
arnes, formerly commissioner of this
tate, urged better method of coliec-
on Of statistics.
The convention then adjourned until
-mor1OW.