New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-05-02
LIFE INSURANCE.


ALBANY, May 1.-The report of the Super
intendent Insurance Department in relation TO the
business done by the life insurance companies in 1873,
which has just been made public Is very interesting
document. Below will be found extracts from 1t:
The experience in the life branch of the business for
1875 Is satisfactory than the fire record for the
same period. The general depression when operated
aga INST the fire has been even more adverse TO the e
business Insurance OF houses stores ana factories is an
absolute business necessity, ana cannot WIN financial
safety, be dispensed with, while life insurance is KIND
OF luxury which under men will foeso even at
great sacrifice Of money already invested A glance
at the number of apsed policies the books OF our
best companies proves this Life insurance not only
staggering under the pressure OF " hard times,
but other have Slapped the foundations
Of public confidence TIE magnificent promises made by
many comp pes and agents have not been fulfilled while
the wrecks OF some hall dozen companies are scaeiea
all the insurance field In every neighborhood the
Insurance solicitor meets with bghted hopes and ruined
fortune caused by dishonest or
The most of these corporations are now In the courts GER
tain parties on one side demanding that the deposits III
this department be placed in the hands OF the receiver
Tor division among all the creditors; the other side
the superintendent strenuOuy insisting that the depO
US In ms hands having been placed tnee iVr r yi
iOn Of pocyhOlders must be used Tor the purpose oIg
lnally intended Already two three suits are SLOWLY
moving up TO the Court of Appeals, whose decision Will
be Anal
Is considerably greater than for several years previous
For this there may be reasons given The Winter
other than climatic natural which undoubtedly tended
TO shorten human life and consequently to depet te
treasury of the life companies The great mass OF those
who insure their lives are the active business men OF n
nation. To them prosperity in trade implies physical
comfort and mental serenity conditions most conduciye
10 longevity; bat the year 1875 in which the
It's commencement till its close, financial disaster was
the rule. and consequently coTodng care and e-sap-
ping anxiety pervaded business circles bringing 70 Ie
grave many. who under more favorable circumstances,
might have lived for years.
The liabilities Of NewYork State companies amount to
B174,57S107 So; assets, $203 60 The income
Of all companies doing business in the State amounted to
BlOs 645 064 49, S7,0S7.62S 90 less than was re-
eeived during 1874 The total of income over eN
pendtures S293j7,9S2 90. The expenditures were
g1249 s66 90 less than in 1874 There increase
Of 5s7 policies and a decrease of $2256S $50 in the
amount insured.
The subject Of amagamations has been discussed as
exhaustvey by the insurance press as any other IL the
whole range of life insurance ana no practical result he
yet been reached The process ami the same
In ,Oerabe evils evolve as in years past DO NOT mean
good results. This Is not Ia some eases tne very re-
is the fact still the process should not he c 10
decided by the necessity of the company nor the
greed of the other. II impossible, as generally ned
though certainly just that all the pocyhSdels STu h
transferred to another company, then law slOtlu
be making il i'm Perave under proper penalties
that company desiring 10 be reinsured and the com
pany intending 10 reinsIv, snail hrst nofy the superb
tendent Insurance Department of their intentions
whose duty shall he to ascertain by examination, or
otherwise, as he may determine, that the company
desiring to be rensuled is IN condition requiring sueh
remedy, and that the company INTENDING 10 cover IT.
Thus the interest OF the pocyhoders would he guartd
which, under the present law aud practice is wholly nm
protected No amaig iinaon should be permitted WIN
company not authorized 10 transact business III the
state under whose laws the retiring company was organ
protection OF the laws under which they are insured
secondly the desiring TO transfer ITS risk ana
The company proposing insure, should have the sane
ton of tn mead Insurance Department based upon
an Examination of actual financial condition, establish
ing the ability the resurng company 10 assume tue
new responsibilities without risk to IT'S own IOhc!-
holders to the policy 1Oders OF the relnsureo COM
pany; thirdly, he contract between the companies
should be passed upon by Tue Alloihey Una. e
lished Tic company reinsured could thei' at once
There six NewIO State life companies ut present
In RECEIVERS hands These anies have on deposit IN
this Department, for the protection OF d 6her pocy
The receivers have been using all legal means each 10
get the amount belonging to his company 70 pay its IN
debodness The superintendent has refused TO pay Over
the funds except for the pupOse Tor winch hey were
whose interests he feels legally morally bound The
consequence is that, OWNS TO defect III tne law which
remain in the keeping o the Department and the policy
holders who in many cases nsea S19 &
There S75,0O0OOO less insurance IL force on the
lst Of January 1876 than the first OF the previous
year Financial difficulties which prevent men from IN
surng also tho principal cause Oh the many ase
recorded the books OF lie companies Aman feels
difficult to pay his premiu his health Is good the evil
day appears far distant tie sacrces his pOcy 70 meet
tasan ms stem fully understanding bearing. and yet
he not unfrequenty holds that the COMPANY 1nSusn
him an injury by not granting some ih,eenee
ant another policy even ON favorable terms He
erroneousy concludes that he has In tact os al tat ne
paid to the company. This feeling Is sun stronger H.
wing TO the removal OF agent or any other iare on
the part of the company to give the usual NORGE tne
by many that honorable companies would III the Gnu p
lie gamers II apses were established on pflhciles
souy rather than on the fact that the premium failed
to be paid at the day aud hour speclned in the policy
Yet men enter such contracts apparently with fu
understanding Of their PROVISIONS, and then compliant
the company does not forego It's rights Inc Msssaenu
nOn-forfeiture law, or some similar ehac1hen
.nabling policy holder to retrieve act oil fOrgotiu
ness his part, or the failure OF the agent 10 s
the usual notice, would do much TO restore pubic conn
Ience in the integrity OF fe insurance management
forced snap lapse may ana nave no uVG !, U,en
does enrich a certain class OF companies put u shanes
Iubc confidence in lie Insurance. lDuilnS the Dest
companies equally with the worst and therefore Snouu'
way, be prevented
some companies have justly and judicou5y coniracea
10 Civ notice. and have granted 30 days lhdul-
gence within which the pOlicy-holder may regain hs
apse mas occurred that the lapse can only Do re-
stored by the person submitting 10 a reeAdnniduVn
which, TO the Old and falling Is simply lmpossIpe. ~
may not be UNJUST Ray some, lor C0in.ans optac
{" prompt payment" III accordance WIN the conIacL
but they airn such acts have done much to lnle
the insurance business in public estimation ms Ost
confidence they say ony be restored by nOnOaOIe
zing their action by establishing, IN accordance WIN
equity. a present value as well as an exten-
gestions and methods of relieving the poicy-h0lder
from fulfilling his part OF the contract can De
less they would ALL 20 extent, tend TO his beneht
but An contract there are two parties ana each mas
that even the law-nakng power cannot radically change
the terms OF existing contracts In Denal OF 0ne Pals,
Involved the greatest possible care shOd be tkeD III AZ
tempting remedy even an acknowledged eNl, SufPUSo
and that their operation seriously mpir the nnaca
standing OF the companies the parties Wno IN te d emu soc
holders are the policy-holders In fact the policy,
holders are, in one sense, ana uhucr one s hh
nd mroner 10 pass an act with special reference to
policies yet to DC issued but the PROVISIONS ,ta o. sm
mat there are already too many Life Insurance Com
nanes total number OF all Ioeies issued ny al
The companies nre On 0 The sit OF December last
774S25 insurng $l922O43116 cay averaging c IS.e