The New York herald., 1876-12-04
LIFE INSURANCE.

LIFE INSURANCE.
THR GRAVE CHARGES AGAINST THE coxrs
NEUTRALITY-SUSPICIOUS. AND THEIR DAM
GERS = HOW INSURANCE SUPERINTENDENT
sMYTH REGARDS THEM
Receiver Anderson, In a conversation with repre-
sentative OF the HERALD, offered the opinion that
those policy holders OF the Continental who assigned
their old contracts for new term policy In another
company were acting fooshly. He SAID that II he
were In their position he would prefer TO effect new
insurance upon the best possible and retain his
old policy for whatever value might possess.
Mr. Anderson doubtless has idea Of the extont Of
the Continental failure and the probable value OF the
contracts neld by the assured
Among those who are engaged in the life insurance
business, and others who interested, there is
strong suspicion that there havo been aGrant wrongs
in the management OF this insovent concern. II 10
asserted that certain parties in connection with tho
transition are purely insurance wreckers, whose busi'
ness 1t is to undermine confidence In company and
transfer risks to another, at the loss of the policy
holders and for their own personal aggrandisemenI
The who make these assertions are generally en-.
gagged in the life insurance BUSINESS desire
best interests subserved by the cxtirpation OF all
the illegitimacy that besets It,
Such rumors and assertions denied by officials
the iacts remain, that the Continental has dissolved
presumably the nstigaton OF Its managers and
that good portion OF It's business is being daily trans
ierrcd 10 the New Jersey Mutual Life II is also known
that the last named company has made previous ANAL
parties whowere concerned In the former transfers
also concerned In this The policy-holders are in
helpless condition, and whatever loss occurs must fall
upon them
The suspicious expressed therefore, not without
some apparent foundation, and those who express
them desire that their ruthtuness falsity may he
est s q
beng gralihed. The gravity OF their assertions
win be better understood when 1t is remembered how
much injury and fraud has previously been accom-
plisned by similar manpulatons. II has AT times
shaken public confidence in all life insurance that has
nearly destroyed one OF the best protective blessings
that mankind enjoys.
rnK INSURANCE suraRiSrENDENr's REPORT.
Apropos OF these weighty considerations it may be
Interesting to the last report OF
perintcndent Smyth, in which the subject OF these
reference TO amagamations OF lite insurance COM
panes. The Superintendent wrote:-'I do not mean to
say that no alnalgamat:ons have been productive Of
good results This IS not So In some cases tho very
is the fact still the process should not be LETT
be decided by the necessity Of the one company nor
The Superintendent then makes a suggestion OF
means by which hc thinks the reinsurance Of q dis.
abled company might be safely performed and con-
tnues :-srhus the interest OF the policy holdors
would be guarded which, under the present law and
practice is wholly unprotected. Such process would
secure-lrst reasonable certainty that the company
desiring reinsurance is in the condition to require II;
second, that the company intending 70 absorb the
contract with the relnsured company, and
especially with Its policy -hoders-a distinction
these principles could not possibly result In iraud
Tho business OF the two companies having become
practically one, would be managed AZ halt the expense
The surviving company would not DO disposed to send
agents misreprasent tho absorbed company and
the confidence oI all the policy holders would be
shaken. The wreckers would ind their occupation
gone Fraud, forced lapses and systematic freezing
out at present the banc of insurance companies In
transition state would be unknown. NY idea for
nrov IN frnud
best and II any other suggest better pan
shall gladly iorego mine and adopt his. But some
thing ought to be done for the protection Of policy
hodersn
The superintendent concludes this part OF his report
insured another but little its gnancia INFERIOR TO
some ready cash, and with but slight Intention
the result showed OF fulfilling It's contract TO Tho
policy holders IL rensured.n
REcHivERsrlirs AND wRECKERs
The superintendent then considers the subject OF
the rccevershp which he had previously referred ~
IA lower deep than even the majority OF amagama.
tions" He concludes this chapter OF his report witt
the following tcrse rcmarks:-"I know OF no instance
in which the assets OF company have materially n
creased in receivers hands, matter how honestly
managed. The tendency simply is to eat out ali mi
available substance OF tho company, and when that
is done the closing up requires neither time moi
effort. There have been instances in which amaiga.
nation has been emncnly advantageous as there may
be instances IN which receiver has been blessing,
though in disguso bu. the cases OF either arc tow.
Amalgamaton ought to be restricted by statute, rs
above indicated, or by some better method, and re-
ceivershps should be made terminate by tho earliest
possible division OF the remaining assets among the
policy holders. The coup de grace, though IT termi-
mated lite, not inirequenty real act Of mercy.
Such believe, would be the sudden termination Of re-
ccIvershps BY u just distribution of assets.'
In reference to the subject of wreckers the Super.
intendent says in his report:"No sooner does lilo
company got into deep than class OF Insurance
agents, mostly not always, OF other companies, hav-
ing by some means secured list OF the risks,
ningly set to work TO mako money out OF the policy
holders OF the already tottcrng corporation. They
interviewed, the feeble condition OF the company
magnned, its assets deprecated, its liabilities In
ad nh tnfn
ton, It's utter worthiessncss asserted. The
policy holder, confused and overpersuaded,
too often falls victim The unscrupulous
agent satisfied with the evil no has DONE oiten in.
creases his ilgoten gains by inducing his victim
get insured IN company that Is perhaps paying him
large per cent Of the premiums received and which,
through this agent is ready to promise any amount OF
annual dividends, while the policy the actual contract
ignoring all such promises, is drawn the safest
possible manner Tor the company. 1t IL possible thcre
are companies whose officers, some Of them. may
encourage the sending forth Of such wolves among
dnfnncnlnas shenn